Budapest, September 30 (MTI) – The government is considering reducing the 27 percent VAT rate in connection with house building with a view to stimulating investments, the economy minister, Mihaly Varga, said in an interview to Wednesday’s edition of the daily Magyar Idok.
The minister also noted that legal plans are afoot to expand the circle of businesses that are required to use online cash registers connected to the tax office. This may apply to service sector businesses such as vehicle-parts dealers, money changers, masseurs and fitness clubs. The government will assess whether to make subsidies available for purchasing the registers, he said.
Other methods for combatting the shadow economy include connecting the accounting systems or business inventories of companies to the tax office (NAV), he said.
The government is continually assessing to which ends it should direct any surplus revenues, Varga said. Besides at some point reducing VAT in connection with house building, next year it will cut personal income tax by a percentage point and it will also reduce tax on certain meat products.
Further, the minister said discussions were ongoing with representatives of banks on further activating lending.