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.