The Government has begun to discuss the budget bill of 2016 and it has been agreed that state funding cannot be lower at any sector or ministry, Minister for National Economy Mihály Varga said at a press conference.
The Minister added that the Government will discuss the bill at several sessions so that it can be submitted to Parliament until 13 May 2015.
He reiterated that new measures include the reduction of the personal income tax from 16 percent to 15 percent, VAT on pork from 27 percent to 5 percent; the increase of family tax allowance for those with two children and the cutting or abolishing of public administration fees.
Mihály Varga stressed that the Government has been following the principle of lowering taxes on labour and income, supporting families and the raising of children and of assisting people in need through the reduction of VAT of certain foods.
Speaking of family tax allowances for those with two children, he said that it is to rise gradually every year from the current HUF 10 000 to HUF 20 000 by 2019; as the first stage, the tax allowance will increase to HUF 12 500 per child next year.
Mihály Varga pointed out that taxpayers will gain HUF 120bn from lower PIT, HUF 25bn from lower VAT on pork, HUF 15bn through the family tax allowance and HUF 10bn through lower fees and duties.
He emphasised that economic growth will provide the financial background for tax cuts, as the Government is expecting economic growth of 2.5 percent, inflation of 1.8 percent and general government budget deficit of 2 percent.
(Ministry for National Economy)
