Good news: decline in Hungary tax-to-GDP ratio largest in EU
The decline in Hungary’s tax-to-GDP ratio last year was the largest in the European Union, Finance Minister Mihaly Varga said on Friday, citing data compiled by Eurostat.
The Eurostat data show that the share of taxes and social contributions as a percentage of GDP in Hungary fell to 34.0 percent in 2021 from 36.1 percent in 2020. The average tax-to-GDP ratio for the EU as a whole stood at 41.7 percent in 2021. “The government continued to cut taxes this year, too, reducing employers’ taxes by 600 billion forints (EUR 1.46bn), preserving the country’s top position among EU countries in 2022 as well,” Varga said on Facebook.
Read alsoHungarian minimum wage earners have to pay the highest taxes in the world
Source: MTI
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1 Comment
Fun fact: the happiest countries do not have the lowest tax-to-GDP ratio. The long read (but who doesn’t want to be informed, right):
https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Tax_revenue_statistics#Differences_in_the_structure_of_tax_revenue_across_the_EU
There’s always the elephant in the (Hungarian) room: our 27 percent VAT rate.
VAT is a tax that every consumer, including the poor, contends with on a daily basis!