Industry association supports tax bill in Hungary

Budapest, November 6 (MTI) – The planned tax cut on labour should manifest itself in higher wages, the head of the Hungarian Industrial Association OKISZ said on Sunday.

In the medium term, wage hikes for employees helps businesses generate more income, György Vadász said.

“Small businesses are able to deliver on a promise to convert tax cuts into wage hikes in the hope of workers producing better services and products as a result,” he said, adding that OKISZ supports the tax package, aimed at reducing tax bureaucracy, submitted to parliament at the end of October.

The bill would raise the revenue threshold for several types of tax for small businesses, while reducing rates for the health-care contribution to just two: 14 percent and 27 percent. It would also introduce a tax preference for investors in startups of up to 20 million forints annually over four years.

Source: MTI