Daily News Hungary economy

Budapest (MTI) – Hungary’s State Audit Office (ÁSZ) encourages lowering payroll taxes, which the recent “whitening” of the economy would allow for, ÁSZ chief László Domokos said in an interview with daily Magyar Idők, published on Saturday.

As a result of recent government measures such as connecting shop tills to the tax authority and the electronic control system for road haulage companies, the shadow economy has narrowed to around 21 percent from the earlier 24 percent, which has increased government revenues by hundreds of billions of forints, Domokos argued. A further 5-percent “whitening” could yield additional revenues of up to 500-600 billion forints, he said.

Domokos said the additional revenue could be best used to cut payroll taxes.

The aim is to curb the black economy further; in Austria, for example, the ratio of the non-taxpaying economy is just over 10 percent, he added.

Domokos said lowering payroll taxes could boost household consumption and savings, encourage investments and could have a positive impact on labour market trends.

Naturally, the decision is not up to the State Audit Office; it is the power and responsibility of elected policymakers, Domokos told the paper.

Source: http://mtva.hu/hu/hungary-matters

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