Hungarian finance minister: AI opens new era in taxation

Artificial intelligence will usher in a new era in taxation, Finance Minister Mihály Varga said at the Tax Administration European Union Summit (TADEUS) in Budapest on Thursday.

AI opens new era in taxation

Varga told the heads of the tax administrations in the EU that the Hungarian government had established one of the most competitive tax systems in the world over the past decade. The National Tax and Customs Authority (NAV) is at the forefront in terms of digitalisation, he added, pointing to electronic systems for invoicing and monitoring flow of goods, and its preparation of several million tax returns each year.

Since 2010, government measures to crack down on tax evasion have reduced the VAT gap from 22pc close to 4pc, while the tax-to-GDP ratio has fallen from 40pc to 35pc, the third-biggest decline in the EU, Varga said.

He said Hungary was in 7th place in the latest annual ranking by the Tax Foundation of OECD countries’ tax competitiveness.

Varga said the meeting, held in the framework of Hungary’s six-month presidency of the Council of the EU, was a good occasion to summarise results and plans, and exchange information.

Photo: Facebook / Varga Mihály

European Commissioner Wopke Hoekstra welcomed the participants in a video message.

Gerassimos Thomas, the director-general of the European Commission‘s DG for taxation and Customs Union, said the new EC was tasked with boosting the efficiency of taxation and fostering closer cooperation and more exchanges of information between tax authorities.

NAV president Ferenc Vagújhelyi said the two-day forum was an opportunity to share best practices.

Read also:

• Hungarian finance minister: Budapest Declaration reaffirms importance of competitiveness
• Hungarian MPs decide on important tax laws