Daily News Hungary economy

Budapest, May 3 (MTI) – Hungary’s government on Tuesday unveiled more details of tax changes planned for next year.

The government wants to tie the excise tax on vehicle fuel to global energy prices and spending the extra revenue on road renovation, state secretary for tax affairs András Tállai said at a press conference, outlining a tax bill to be submitted soon to parliament.

Excise tax on fuel would rise by 10 forints for diesel and 5 forints for petrol if the global price of Brent crude drops below 40 US dollars, in one scenario, and 50 dollars in the other, generating an additional 20 billion forints in budget revenue.

The excise tax on tobacco will rise by September 1, 2016 to comply with European Union rules, Tállai said. The increase must reach 29 percent by the end of 2017, he added.

Changes to tax preferences for families with two children will save 350,000 households a combined 15 billion forints.

The government will scrap the 30 million forint limit on tax preferences for investments by SMEs.

Companies that cannot avail of the full R+D tax preference against their corporate tax will be allowed to apply the deduction to social contributions up to a 50 percent threshold.

In the interest of cracking down further on the shadow economy, the government wants to reduce the threshold requiring a detailed report of VAT to the tax office from 1 million forints to 100,000.

The government also wants to tighten controls on an electronic monitoring system for road haulage companies, broaden the system of online invoicing and require vending machines to be connected directly to the tax office.

(HUF 100 = EUR 0.3212)

Source: http://mtva.hu/hu/hungary-matters

Leave a Reply

Your email address will not be published.