How many years the tax will take to introduce is another question, Mr Orban said on Monday.

    The new tax, to be linked to family subsidies, "will have the lowest rate ever", Mr Orban said. It is "expected to make the Hungarian economy the most competitive in Central Europe....or at least be a big step in that direction," he said.

    The government will announce details of the new Szechenyi Plan -- a scheme to support SMEs -- at a business forum on Wednesday, Mr Orban said.

    Speaking about an extraordinary bank levy that was a point of contention at recent talks with the IMF and EU, Mr Orban said the government had to introduce the tax to meet its commitment for a 3.8pc-of-GDP deficit target for 2010. Hungary has an obligation to the IMF to meet the target, but the country has a free hand in determining how to deliver that target, he added.

    The talks with the IMF and the EU on the conditions for Hungary's financial support package were suspended to give the government more time to clarify open questions. National Economy Minister Gyorgy Matolcsy said the delegations did not like the bank levy, but added that the bank levy would ensure Hungary meets its deficit target for 2010.

    "In October, [EU prime ministers] will agree on when the 27 countries have to bring down their budget deficits to the expected 3pc [of GDP]," Mr Orban said. "That [date] will apply to every country, and if we keep to that, if we can swim together with the others, then we won't need any extra safety belt," he added.