Budapest, January 4 (MTI) – The restructuring of Hungary’s tax office (NAV) is necessary to ensure that the country’s economic competitiveness can continue to improve, Economy Minister Mihaly Varga said on Monday.

Speaking at a ceremony at which he appointed new tax office leaders, the minister said the overhaul will enable NAV to better contribute to the country’s growth and to better adapt to changes in the economy.

Varga said Hungary’s tax system had reached a turning point and the reorganised system will promote economic growth. The restructuring will provide quicker and simpler methods for both companies and individuals to pay their taxes.

As a state secretariat operating as part of the economy ministry NAV will put together a more “customer-friendly” tax system that will place less administrative burdens on taxpayers, he said.

Varga said tax compliance is constantly improving and fresh data indicate that last year’s tax revenues exceeded projections by 531 billion forints (EUR 1.68bn). The minister attributed the increase to the higher than expected growth rate, favourable market trends and the whitening of the economy.

He noted that under a new tax law, NAV will prepare the tax returns of 1.5 million private taxpayers who only collect an income from their employer and are not entitled to tax benefits. From 2017, the tax office will prepare the tax returns of all private taxpayers.

Andras Tallai, the economy ministry state secretary responsible for tax affairs, said at the event that the restructuring of NAV, including the introduction of the new tax system, will have to be completed within six months.

Photo: mti

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