Oppisition Mi Hazánk seeks to increase KATA preferential business tax benefits

The opposition Mi Hazánk party has urged that caps on the preferential small business KATA tax should be placed significantly higher, rather than restricting its benefits.

István Apáti, deputy leader of the party and head of parliament’s business development committee, told a press conference on Tuesday that KATA had turned out to be more popular than expected, and insisted that plans to change it were “shocking”. He noted that some 460,000 businesses, including 426,000 self-employed entrepreneurs, were paying their taxes in the KATA system, which means that “it helps at least 1.6 million people to a living”.

Concerning details of Mi Hazánk’s proposal, Apáti said that

the annual income cap for KATA eligibility should be increased from 12 million forints (EUR 30,000) to 24 million, while the maximum income allowed from any single customer should also be doubled, from 3 million forints to 6 million.

He added that

the tax on revenues above this 6 million forint cap should be reduced from 40 percent to 15 percent.

Referring to planned restrictions to KATA, Apáti said that his party would only support “absolutely necessary” changes, such as discontinuing the possibility of paying KATA on renting out apartments. He also suggested that KATA payers should be allowed to deduct their expenses from revenues.

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