Budapest, August 15 (MTI) – Hungary’s economy ministry is weighing a possible reduction in payroll taxes, the head of the portfolio said in Monday’s issue of daily Magyar Idők.

“Payroll taxes [in Hungary] are higher than the European Union average, which could put the country at a competitive disadvantage,” Mihály Varga told the paper.

“On this basis, it appears that deliberation on a reduction in payroll taxes is inevitable,” he added.

Varga conceded that the government has “less room to manoeuvre” when it comes to payroll taxes as the revenue they generate must cover healthcare and pension expenditures.

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“We’ve balanced the healthcare and pension funds only after years of hard work….It would be a mistake to endanger this balance,” he added.

National business association VOSZ said later on Monday that they would support a proposal to lower payroll taxes.

Source: MTI/Magyar Idők

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