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Government: The left would punch a HUF 800 billion-hole in Hungary’s budget
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The opposition Socialists’ three amendment proposals submitted to the government’s amendment to the tax laws would “punch a hole of HUF 800 billion (EUR 1.97 billion) in the central budget”, deputy finance minister András Tállai told MTI on Sunday.
The proposals, if passed into law, could compromise the government’s programme of capping household utilities, maintaining the family support system and preserving the real value of pensions, Tállai said.
According to Tállai, the leftist parties would “hand out funds irresponsibly, missing the target, and it would destroy a well-functioning tax system which contains incentives for employment”.
Concerning the actual proposals, Tállai said one of them was aimed at scrapping tax refunds, which ran contrary to the government’s aim of “levying the lowest possible taxes on revenues gained through work”.
Now for the facts – relative to the OECD average, the tax structure in Hungary is characterized by:
Higher revenues from social security contributions; payroll taxes; value-added taxes; and goods & services taxes
(excluding VAT/GST).
A lower proportion of revenues from taxes on personal income, profits & gains; taxes on corporate income & gains; and
property taxes.
https://www.oecd.org/tax/revenue-statistics-hungary.pdf
Our Politicians are holding off on the 15% Global Minimum Tax for large multinationals (which WILL be introduced) whilst clinging on to the EU’s highest 27% VAT rate.