Budapest (MTI) – Radical nationalist Jobbik would introduce a personal income tax regime to support production, the party’s deputy group leader said on Saturday.
The party would grant tax preferences in the industrial, agricultural, tourism and catering sectors with the aim of strengthening the Hungarian economy, Janos Volner told a press conference.
The tax rates would be set after consultations with the professions, he said.
He said the 27 percent VAT bracket “has created a hotbed for the shadow economy,” adding that this rate leaves an annual hole of an estimated 900-1,200 billion forints (EUR 3-3.9bn) in the central budget.
Now the central aim is “to collect this missing amount from the people,” he said.
Volner repeated his party’s earlier proposal on reducing the VAT on basic foodstuffs and items families need for raising children to 5 percent. This would serve the goal of raising the birthrate in the country, he added.
Ruling Fidesz said in a response that Jobbik had until now objected to measures the government had implemented to support Hungarian families.
Jobbik has continuously attacked these measures together with the political left, Fidesz said.
“Lawmakers of Jobbik, just as several politicians on the left, voted against the utility fee cuts, the fx loans settlement with the banks and the conversion of these loans into forint denominated ones,” said Fidesz, adding that, even if alone, the party will implement additional tax cuts to further help Hungarian families.