PM’s Office: Tax Cuts To Continue

  • 24 Jun 2018 11:13 AM
  • Hungary Matters
PM’s Office: Tax Cuts To Continue
The government will continue cutting taxes, Gergely Gulyás, head of the Prime Minister’s Office, told a regular press conference.

Speaking of the proposal on tax changes which the finance ministry submitted to parliament last week, Gulyás said that the social contribution tax will be cut by a further 2 percentage points to 17.5% in 2019.

Depending on economic development, the government hopes to cut rate down to 11.5% over four years, Gulyás said.

Family allowances will continue to rise, with families raising two children getting 40,000 forints (EUR 122.6) monthly from 2019, he said.

Pensioners taking on jobs will only have to pay the personal income tax, and the VAT of milk is to be cut to 5%, Gulyás said.

The only tax the government plans to raise is the so-called “chips tax” on foods and beverages that constitute health risks, Gulyás said. The tax on unhealthy foods will be raised by an average of 20%, he said.

Funding allocated to the non-cash benefit system for employees will remain unchanged but the benefits will only be available through SZÉP cards, designed to support inland tourism and consumption, Gulyás said.

The cafeteria system was originally introduced to ensure better taxes on a portion of the employees’ wages, he said.

However, taxes have become much more favourable since, he said. The government suggests employers should use resources from economic development and tax cuts to raise wages, he said.

MTI Photo: Balogh Zoltán

Related links

Government Submits Special Tax Changes To Parliament

Hungary Gives Up Pálinka Fight With EU

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this twice-daily newsletter covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI. Click the title above for more info, and to subscribe.

Explore More Reports

  • Video: Overview Of Pompeo's Hungary Trip

    Video: Overview Of Pompeo's Hungary Trip

    • 12 Feb 2019 10:36 AM

    US Secretary of State Mike Pompeo has kicked off his central European tour as the US is trying to counter Russian and Chinese influence in the region.

  • Huawei On Agenda Of Pompeo-Orbán Meeting In Hungary

    Huawei On Agenda Of Pompeo-Orbán Meeting In Hungary

    • 11 Feb 2019 10:57 AM

    US Secretary of State Mike Pompeo will express concerns over the growing presence of Chinese telecoms giant Huawei Technologies in the region on his current visits to Poland, Slovakia and Hungary, a high-ranking US official told Reuters news agency.

  • Hungarian Opinion: Controversy Over Research Reform Plans

    Hungarian Opinion: Controversy Over Research Reform Plans

    • 11 Feb 2019 8:05 AM

    As the government plans a radical overhaul of the structure of scientific research, a historian critical of the government calls for a concerted protest against those plans, while his pro-government colleague accuses him of harbouring anti-democratic intentions.

  • Holocaust Remembrance Day Marked In Budapest

    Holocaust Remembrance Day Marked In Budapest

    • 28 Jan 2019 8:04 AM

    Commemorations were held in Budapest on Sunday, to mark International Holocaust Remembrance Day, the anniversary of the liberation of the Auschwitz-Birkenau death camp in 1945.