Government to continue phasing out sectoral taxes
The government will continue to gradually phase out special taxes on some sectors of the economy, the finance ministry said prior to submitting a bill on tax changes for next year to lawmakers on Tuesday.
The suspension of the advertising tax would be extended for another year, while the utilities tax would be phased out in part in 2024 and in full from 2025, according to the bill, the ministry said. Rules on personal income tax and contributions would be simplified, and amendments would pave the way for the broad adoption of electronic receipts. Taxation of sole proprietors would be “significantly streamlined” from 2025, it added.
The ministry said the European Union directive on the global minimum corporate tax would be transposed into national legislation in a separate bill. The rules, which would apply only to companies with annual turnover of more than 750 million euros, would allow for investment preferences and take into account other taxes paid in Hungary. The new rules would support Hungarian businesses’ competitiveness “to the greatest possible degree”, the ministry added.
The government is holding to the principle, adopted in 2010, of improving tax collection rather than raising taxes, the ministry said. The personal income tax rate — among the lowest in Europe, will remain in place, as well family tax preferences, preferences for newly married couples, preferences for families with four or more children and PIT exemptions for mothers under 30 and all Hungarians under the age of 25, it added.
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Ministry to launch public debate on ESG bill
The economic development ministry on Tuesday said it is launching a public debate on an Environmental, Social and Governance (ESG) bill to be submitted to parliament with the aim of boosting the competitiveness of Hungarian businesses. A large share of Hungarian companies already receive data requests and face expectations related to ESG, the ministry said in a statement. This calls for clear regulations and forward-looking support for businesses, it added.
It said the government is planning to submit an ESG bill to parliament in line with the goals of its SME strategy in the interest of boosting business competitiveness. Another aim, it added, was for consumers to be able to make informed decisions. The bill’s submission will be preceded by a public debate in which the government is seeking the opinions of stakeholders, the ministry said.
Forget the E.S.G. nonsense. Let companies focus on their core product or service, without distractions that pertain to social engineering and such. It’s bad enough so many corporations already wade into politics and “culture wars” without it being legally mandated now, too. No wonder the first world is not competitive anymore when businesses are strangled with all these ridiculous regulations. Think companies in China or India or Mexico have to produce these ridiculous reports and dedicate dozens of staff members to compiling them?!?!
Sadly, business cannot always be relied to manage these issues without legislation. We are not China or Mexico, though the former is investing vast sums in environmental and governance!
We have no choice but invest in the environment whether we like it or not. Otherwise our children will suffer.