Tax burden to decrease further in Hungary?

The government has managed to simultaneously reduce the tax burden while increasing revenues this year, and this additional money is being ploughed into new measures under the family protection action plan as well providing coverage for new tax cuts, a finance ministry official has said in an interview published on Tuesday.

András Tállai, parliamentary state secretary of the finance ministry, told the daily Magyar Nemzet that

the government is already working out the details of a second economic action plan, including measures to further reduce the tax burden.

By the end of November, revenue from corporate and excise taxes, VAT, personal income tax and social contributions increased by 1,300 billion forints (EUR 3.9bn) from the same period last year, with an extra 500 billion forints from VAT alone and 200 billion forints from PIT. This is all thanks to a combination of vigorous economic growth, tax cuts and the dismantling of the shadow economy, he said.

• Government to launch new economy protection plan next year

Tax cuts have helped in getting more people into legal jobs with higher salaries,

Tállai said. This leads to more taxpayers paying smaller taxes that contribute to bigger overall revenue, he noted.

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Source: MTI