Hungarian business chamber proposes measures to ease economic impact of epidemic

The Hungarian Chamber of Industry and Commerce (MKIK) on Monday unveiled a new package of proposals it has sent to the government on ways to ease the economic impact of the coronavirus.

MKIK is proposing the government help preserve jobs and manage the rise in unemployment with a mix of grant money and credit to be repaid in 2021 or 2022.

The chamber is also proposing that the Small Business Tax (KIVA) rate be lowered from 12 percent to 9 percent.

Businesses that opt for KIVA pay the tax on a base of payroll expenditures plus dividends and capital transfers. KIVA businesses are exempt from the payroll tax, training tax and corporate tax.

MKIK wants the government to roll out targeted payroll tax preferences up to 50,000 forints per employee, capped at 12.5 million per business, but only for staff that companies keep on payroll.