Budapest (MTI) – The government is working to reduce employers’ contributions so that Hungary’s competitiveness reaches that of the Czech Republic or Slovakia in five to six years, economy minister Mihály Varga told a press conference on Wednesday.

Varga added that cutting contributions will be coupled with wage hikes.

To further promote competitiveness, the government will provide start-up companies with tax incentives in their first three years, Varga said.

Concerning residency bonds, Varga said that the government had not decided as yet if the instrument would be discontinued. He suggested that the bonds could be retained “in reserve” with altered conditions.

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The government is not planning to issue forex bonds on the international market, Varga said, but he did not exclude that possibility, either.

Photo: MTI

Source: MTI

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