As Minister for National Economy Mihály Varga said at a recent press conference, the Ministry is to widen the group of organizations and partners which will be invited to negotiations on the planned payroll tax cuts.
The Ministry aims to boost the economy’s competitiveness through these tax cuts and reach the average indicator of the Visegrad Four in five-six years. Lower taxes, he added, must translate into higher net wages.
The Ministry submitted the so-called autumn tax package to the National Assembly this week, and the proposed modifications aim to reduce public burdens, boost competitiveness and reduce taxation-related paperwork.
Amendments are also designed to fight the black economy and VAT fraud.
The planned amendment of regulations on fringe benefits, called cafeteria in Hungary, will leave HUF 1.5bn at enterprises. The scope of tax incentives applicable for corporate development projects will also change, he said.
As the Minister pointed out, the amendment of the 2017 Budget Bill will leave macro-economic predictions unchanged, and certain changes in the bill will facilitate an even more prudent and responsible management of public finances.
Mihály Varga added that the Government is awaiting a new credit rating upgrade, and they will decide on the future of the so-called residency bonds only after that; however, the programme’s conditions must certainly be modified, he said.
(Ministry for National Economy)
