Thanks to tax measures of past years, the tax burden on labour and that of enterprises have been reduced and tax collection has become more efficient. The tax package accompanying the 2016 Budget Bill helps create a budget of tax reductions, Minister for National Economy Mihály Varga said at a press conference following the adoption of the tax package by the National Assembly.
Tax reductions have been enabled by economic growth and the more efficient fight against the black economy, he said.
The Minister stressed that tax amendments will leave in 2016 as much as HUF 230bn more in the economy: at employees, families and enterprises. Lowering the personal income tax rate from 16 percent to 15 percent leaves HUF 120bn at employees, while the revenue shortfall due to cutting VAT on pork from 27 percent to 5 percent totals HUF 25bn and the income of families increases from HUF 10 thousand to HUF 12 500 per child and month thanks to the amendment of family tax allowances for those with two children.
State public service fees and charges are also set to decline, he added, by some HUF 10bn. In accordance with the MoU concluded with the EBRD, bank taxes will be HUF 60bn lower. Banks that have increased lending after 2009 will be entitled to reclaim as a whole HUF 10bn of taxes.
The Minister pointed out that the lower personal income tax rate has since 2010 left HUF 850bn more at families.
While the economy is expected to become even more transparent, in case circumstances permit VAT on poultry may also be cut. The tax break for high-growth enterprises is expected to assist some 20 thousand companies through development projects and hiring.
3 percent – some HUF 186 million -- of gambling tax paid by casinos will be allocated for charity. Enterprises that develop public utility networks are exempted of paying tax for up to five years after completing the project.
Local governments, he continued, may provide tax breaks for general practitioners, paediatricians and dentists resulting in HUF 200 thousand lower payments per year.
(Ministry for National Economy)
