Official: Government’s tax cuts are working

The Hungarian government’s tax cuts are working, finance ministry state secretary András Tallai told the Saturday edition of daily Magyar Nemzet, pointing out that while public burdens on businesses and households have been reduced, tax revenues have increased significantly.

According to the finance ministry’s most recent budget report, tax revenues in the first half of 2019 were 840 billion forints (EUR 2.6bn) higher than during the same period last year.

Revenues from corporate income tax, the social contribution tax, VAT, personal income tax, excise duties and contributions came to around 6,670 billion forints in the first six months compared with 5,830 billion forints this time last year, Tallai said.

VAT revenues were up by almost 400 billion forints while PIT revenues rose by about 100 billion forints, the state secretary added.

Tallai said the statistics showed that the government’s economic policy was working.

He said that if a country’s budget revenues are up after the government cuts taxes “then things are going in the right direction.” Tallai said this meant that businesses and private individuals had confidence in the government’s decisions and believed that it was worth investing and living in the country.

The government has been cutting taxes for years, the economy is adding more and more jobs, wages are rising and economic indicators are “excellent”, the state secretary said.

He added, at the same time, that the leftist opposition “still hasn’t given up on austerity” and was campaigning for tax increases ahead of the autumn municipal elections.

Source: MTI