The tax office must treat companies, entrepreneurs and private persons as partners, assisting them to fulfil taxpayer duties in a simpler, faster and less complicated manner, Minister for National Economy Mihály Varga said at the ceremony for appointing new leaders of NAV.

Deputy Economy Minister and Minister of State for NAV András Tállai stressed that the tax office reform is to be completed in the next six months, which process will include the introduction of a NAV career model, new tax regulations and the extension of on-line administration services.

DownloadPhoto: Géza Dede/Ministry for National Economy

Minister Varga emphasised that tax measures introduced in the past years have necessitated the creation of a tax authority with a new attitude. Recently introduced measures are already having some positive effects: budget revenues show that taxpayer morale has improved significantly. 2015 cash-flow revenues are HUF 530bn higher than originally projected, Mihály Varga noted, adding that VAT, personal income tax and corporate tax revenues have all come in higher than formerly planned.

As the Minister stressed, the new tax authority will bring a number of positive changes for taxpayers. The organizational structure and bureaucratic procedures will be simplified and thus administrative processes will become faster. For example, regional directorates general will be abolished, and as a result the current 79 organizational units will be reduced to 39. The number of departments will also be cut, from 35 to 29, and the number of top managers from 154 to 79. As a consequence of new regulations, the Minister said, tax controls and control deadlines will become shorter and tax office communication will be simpler. The new organization will place larger emphasis on the observance of taxpayer rights; therefore, a Directorate of Appeals is to be established.

DownloadPhoto: Géza Dede/Ministry for National Economy

Mihály Varga added that as of 1 January 2016 the NAV belongs to the organization of the Ministry for National Economy. At the heart of changes lie efforts to shift the focus of the tax authority on helpful cooperation instead of calling taxpayers to account or levying fines.

The Minister appointed four Deputy State Ministers to assist Minister of State Tállai: Tamásné Csilla Czinege will be responsible for taxation issues, Tamás Molnár for customs and international issues, Zsuzsanna Judit Szeleczki for official and supervisory issues and László Sors for law enforcement and criminal issues. Márta Erzsébet Marsi becomes Director General of NAV Central Command.

(Ministry for National Economy)