Hungarian government plans extremely high tax revenues – who will pay?
The 2023 state budget shows that the fifth Orbán government would like to increase its tax revenue drastically. They state that the companies will pay the increase, but numbers do not support that, one of the Hungarian media outlets argues. Népszava says the government plans to collect 5,500 billion HUF (13.74 bn EUR) additional tax in 2023. The taxpayers’ contribution will grow one third.
According to Népszava, the government tries to convince people that the tax will not affect them. However, that is false, the Hungarian media outlet states. One example is Ryanair’s policy.
The low-cost airline announced earlier that they would pass the government’s new tax on the passengers.
But there are even greater problems.
As Népszava highlights, the 2023 budget numbers also show that the Hungarian taxpayers will have to pay the costs. The government would like to raise their tax revenue by 5,500 billion HUF (13.74 bn EUR), aiming to collect 30,976 billion HUF (77.37 bn EUR) in 2023.
The cabinet has recently decided on the necessary budgetary adjustments. Based on their announcement, the restrictions concern 2022 and 2023.
They plan to collect 8-900 billion HUF (2-2.2 bn EUR) as extra tax and decrease expenditures by 1,000-1,200 billion HUF (2.5-3 bn EUR). As a result, the yearly budget adjustment will reach 2,000 billion HUF (5 bn EUR).
However, the 2023 budget shows different figures. The additional income of the budget from extra taxes will reach 900 billion HUF (2.2 bn EUR), but there will be an extra 4,600 billion HUF from other sources. Companies will pay 1,000 billion HUF more in Hungary’s budget, which is a considerable contribution increase.
The rest, 3,600 billion HUF, will be paid by citizens.
The personal income and consumption tax increases will provide the sources, Népszava argues.
The personal income tax increase will be the consequence of the salary raises and the growing employment. The government plans to collect 30 pc more from VAT and 27.7 pc more from consumption tax. Furthermore, the government wrote that its excise tax revenues would increase by 12.6 pc. The ministry of finance did not add an explanation. Népszava believes the reason for the government’s optimism might be the consumption growth, the inflation and their 2022 experience when the VAT income was higher than expected.
Meanwhile, the government plans to reduce the number of public employees.
The Orbán cabinet would like to save 30 billion HUF (75 million EUR) with that. Furthermore, most public employees will not get a salary increase in 2023, while the inflation might reach 6-7 pc.
Read alsoSigificant proportion of Hungarians would introduce euro in Hungary
Source: Népszava
Why not increase VAT a little? That should do the trick! Oh – wait. We are already 4th highest in the world (27%) – after Bhutan (50%) Djibouti (33%) and Burma/Myanmar (30%). Who pays VAT? The end consumer.
At the same time, our Leaders are kicking and screaming against the EU / OECD Global Minimum Tax which would tax multinational corporations at a minimum of 15% (as opposed to our current 9%). Corporate won’t be contributing too much, then…
It’s all the election bribes coming back to bite them in the arse.
Travelling Well – the Economy of Hungary.
Citizens continue to be FOOLED, by this present Government, especially those from, which in the structure or layers of the population of Hungary – is an excessive high percentage, the lower class.
WHO continues to pay and who going forward is going to pay, that will see quality of life, that lower streatching into middle class – PAYING.
The gap was continuos in widening prior to February 2020 in Hungary, under the first & second “coming” of this present Fidesz Party led Government, under Victor Orban.
The Social Gap – Social Inequality.
Hungary – it becomes clearer – large SPOT Lights – center stage, the Social Inequality factor, the unevanness in the distribution of resources that continue to occur, through norms of allocation, that do engender specific patterns along lines of socially defined catagories of persons.
Catagories – Class division the widening divisions within Society – Ghastly.
Citizens of Hungary – your vote at the recent National Elections – you had time, years in FACT, evidenced ALL around you, that this present Government, your elected Government April 2022 – was a Social Divider.
Hungary – we live in a Blackening Hole, through the sickening and worsening – Economic & Financial position we are in.
Citizens who voted for this Political Party – Fidesz under the leadership, the present Prime Minister of Hungary – Victor Orban – never forget by your Vote – that you are :
(1) – Accountable.
(2) – Responsible.
(3) – Ownership – of the present and going forward – Economic & Financial postion being FACED by Hungary.
Citizens – nothing in Hungary is GOING to get Cheaper.
If you have a business in Hungary now it is time to move the business elsewhere….why work when the government will take all the profits?!
German Car Manufactures – keep a VERY Close Eye – on them.
Companies – Businesses, those with Strong European ownership and history, that expands GLOBALLY, to think, by this FOOLISH and Idiodic agenda, set in place by this present “Dictatorial” Government of Hungary, to “hand on” any profit fat, from the bottom line of there Balance Sheets – Mindboggling.
The vulnerability growing un-certainty of the position Hungary – has placed it-self in, an Economy, that is all but STRANGULATED – hedging in a lower trend, the immediate to short and long term of Hungary – endangered.
Ask your-self this question but exclude Russia & China – who are FRIENDS of Hungary ???
I believe anyone working in the area of Taxation is scrambling to explain Hungary’s various positions to their clients … You could be hit with something entirely random to fit a populist agenda, then there is the opposition to the EU’s directives, this time about the global minimum tax … The only overriding reasons to do business in Hungary now are (EU) grants, incentives and cheap local labour. For the latter, somehow, wages do not appear to rise at the pace of inflation!
@Anonymous – re pre election bribes: I am sure you know the saying that ‘there’s no such thing as free lunch’. As taxpayers and residents in Hungary are about to find out. Bribing the electorate is very expensive and ultimately they pay the price.