The rate of personal income tax is set to be reduced further, from 16 percent to 15 percent, which will leave HUF 120bn more at people, Minister of State for NAV András Tállai said.
As a result of the extension of family tax allowances, families with two children may deduct HUF 5000 more from their tax base, and thus the monthly tax allowance of parents with two children will increase to HUF 25 000 in 2016.
András Tállai stressed that experiences of past years have proven that introducing a flat-rate personal income tax system had been the right decision. As a consequence of the introduction of the flat-rate personal income tax system and family tax allowances, the extra amount left at families totalled HUF 460bn in 2011, HUF 475bn in 2012, HUF 540bn in 2013 and some HUF 600bn in 2014. For 2015, a similar amount is projected.
The Government expects that through reducing VAT on home-building from the current 27 percent to 5 percent will add 5000 to the number of new homes and generate investment of HUF 100-120bn.
Among achievements, the Minister of State also highlighted the reduction of VAT on pork, from 27 percent to 5 percent in 2016.
(Ministry for National Economy)
