Good news for low-paid employees: Tisza government vows to cut tax, boosting earnings significantly

The personal income tax rate on the minimum wage will be cut to 9 percent, István Kapitány, the incoming economy and energy minister, said on Facebook on Wednesday.

Kapitány said the Tisza Party’s key goals included credible, predictable economic policies to curb inflation and create a fairer tax system.

“One of the first steps is cutting the personal income tax on the minimum wage to 9 percent, leaving over 240,000 forints [EUR 661] more a year in the pockets of lower earners,” he said.

“Everyone earning below the median wage — currently around a gross 625,000 forints a month — will also pay less income tax,” Kapitány said.

“For example, someone making gross 420,000 forints will keep an extra 180,000 forints a year, someone on 500,000 forints will keep around 120,000 forints more, and someone on 625,000 forints will keep an extra 60,000 forints.”

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Featured image: depositphotos.com