The Government and economic partners share the opinion that the next phase of reducing public burdens should include the lowering of social contributions.
There will be several proposals related to the labour market and employment in the autumn tax bill, Minister for National Economy Mihály Varga said at the press conference held after the weekly session of the Economic Cabinet in Budapest.
The Minister added that these proposals may help – already from 1 January 2017 -- the hiring of jobseekers by enterprises with labour shortages. The Government is to hold talks with partners on which form of contribution reduction they believe to be necessary. Social contributions may only be modified, however, in a way that guarantees sufficient coverage for healthcare and pension expenditures, he pointed out.
The Minister informed the press that through a capital increase at state-owned bus and coach operator Volán Plc the company is enabled to begin a bus purchasing programme. Thus, the domestic bus manufacturing sector can be bolstered and the average age of buses operated by the enterprise may be reduced, he said. In the next five years, he added, the Government will spend HUF 16bn per year, altogether HUF 80bn, on development projects in Pest County. The Cabinet laid out details of this programme at the session, aiming to accelerate the conception and planning of projects.
The Government’s economic growth target of 2.5 percent of GDP is attainable, he stressed, as data from the initial two quarters of this year show economic growth momentum has remained strong.
At the meeting, participants also discussed options for cutting red tape for CSOK (Home Purchase Subsidy scheme for families), and there is “a good chance” that proposals will be endorsed by the Government and after that further forms of allowances and subsidies may speed up the utilization of incentives. Some taxation incentives are also being considered, he said, and they can be included in the autumn tax package.
(Ministry for National Economy)
