Hungary’s 2020 budget to bring EUR 245.5m tax reductions

Next year’s budget, which the parliament accepted on Friday, will bring a total of 80 billion forints (EUR 245.5m) in tax reductions, a state secretary of the finance ministry told the daily Magyar Nemzet.

In an interview published in the daily on Saturday, András Tallai said taxpayers’ administrative burdens will also be significantly reduced in 2020.

The ruling parties were again “basically left to their own devices” to create a tax system supporting families and economic growth, Tallai added.

“The country’s economic indicators are soaring, quality of life is rising, entrepreneurship is easier and easier. It is hard to grasp why the left-liberal opposition insists on mulling tax hikes and austerity,” he added.

As long as the ruling Fidesz-Christian Democrat majority makes the decisions on taxes, there will be no tax hikes or property taxes, and the measures supporting families will stay in place, he said.

To protect families and boost the economy, Tallai said the government is introducing personal income tax (PIT) exemption for mothers of four, reducing VAT for commercial accommodations to 5 percent from 18 percent and will simplify the contributions to be paid after employees, among other measures.

Source: MTI