Budapest, January 18 (MTI) – Hungary’s reformed tax system is set to leave 850 billion forints (EUR 2.7bn) with taxpayers in 2016 in comparison with 2010, the daily Magyar Idok said on Monday.
Economy Minister Mihaly Varga told the paper that the government’s main aim when it comes to reforming the tax system is to make sure more money stays in people’s pockets. Only bigger consumers will pay more in tax under the new system, Varga said.
Varga said the new tax laws left about 500 billion forints with taxpayers each year between 2011-2013. Taxpayers saved about 600 billion forints in 2014 and will be likely to save over 850 billion forints this year as against 2010.
About 1.3 trillion forints of the 3.6 trillion taxpayers will have saved since 2010 by the end of this year is made up of tax preferences for families with children, Varga said.
Varga said Hungary’s personal income tax rate of 15 percent is among the three lowest income tax rates in the European Union, with only Bulgaria applying a lower rate and Lithuania also employing a 15 percent income tax rate.