Hungarian government plans tax cuts
Despite the war, Hungary’s government is planning to introduce further tax cuts for SMEs, the finance minister said on Friday, after talks with László Parragh, the head of the Hungarian Chamber of Commerce and Industry (MKIK).
The government is committed to cutting red tape and taxes for companies, the ministry cited Mihály Varga as saying. The government will expand tax cuts for companies employing people living with disabilities, and cut red tape for companies, he said. Varga praised MKIK’s role in representing the interests of SMEs, which he said contributed to a “successful economic policy and to companies weathering back-to-back crises more easily”.
Parragh and Varga agreed that tax cuts for SMEs would improve companies’ competitiveness and Hungarians’ quality of life. Last year, the OECD ranked Hungary among the ten countries with the most competitive tax environments, putting it ahead of countries like Sweden, Germany and Austria, he added.
China will finance Hungarian investments? HERE is our article.
Hungary is not involved in any war. Mihaly Varga’s non-sequitur is something continually uttered by the Fidesz government as a means of excuse for the government’s economic failures.
How about reducing the 27% AFA, the highest in the EU, to the minimum required by the EU: 15%? Do you know how much bread and milk and fruit cost today? Why do poor people have to pay 27% VAT? Why doesn’t Lőrinc Mészáros and other billionaires like the head of OTP Bank pay 27% and I pay 15%? My monthly income is less that 200 000 HUF. Their monthly income is 20 000 000 HUF. Is this fair?
Another “despite the war” non-sequitur from the Fidesz barking seals. There is no war in Hungary. It’s in a completely different country. This “despite the war” slogan that the Fidesz puts out is used to cover its’ complete failure to create a better life for Hungarians. The people in charge of the country are the ones to blame for your problems.
Muddled thinking here. True the government can play with tax rates, but how a tax break for SMEs is going to help? The people forming SMEs are the general population who have hardly any capital to do anything anyway. SMEs were a method to reduce some costs, but the government has made it near impossible to save even through those vehicles. Remember KATA? Or what replaced it, the cascade of changes yearly to the point where having a company was just more cost than it was worth?
If Hungarians don’t feel like investing in their country, and the Hungarian government can’t be bothered to invest in their own kids, and foreign companies have learnt that the Hungarian state is whimsical and happy to slap on windfall taxes whenever a company starts to recoup its investment, then who is the state hoping to encourage to invest?