“2017 will be about tax cuts, pay rises and increased support for families, while we must also apply all possible instruments to increase Hungary’s and Europe’s security”, Parliamentary State Secretary Csaba Dömötör from the Cabinet Office of the Prime Minister emphasised at his press conference on the last day of the year.
“Today, Hungary is gaining strength and we would like it to continue to gain strength in 2017 and for every Hungarian citizen to feel the effects of this improvement in their own lives”, Mr. Dömötör stressed.
“Employer’s taxes will fall by 5 percentage points next year and corporation tax is being reduced to 9 percent. This means that Hungary will have the lowest level of corporation tax among the member states of the European Union”, the State Secretary said, adding: “This tax cut will make it easier for enterprises to cover the costs of higher salaries. It is good news for small enterprises that the tax benefit for small businesses is increasing to double – the income limit for the itemized tax on small businesses (KATA) is increasing to 1 million forints from the current level of half a million”.
Mr. Dömötör also spoke about the fact that VAT on basic foodstuffs such as milk, poultry and eggs will be reduced from 27 percent to just 5 percent from January. According to the Government’s calculations this measure could leave as much as 35-40 thousand forints extra in the pockets of families with two children. The level of VAT on internet services is also being significantly reduced to 18 percent.
“The tax benefit for families with two children will be increasing to 30 thousand forints/month from January. This represents savings of 360 thousand forints-a-year. This is another way in which the Government would like to reduce the burdens on families with children”, the State Secretary highlighted.
“Major resources are available for the home creation programme. The Government has set aside a budget of 211 billion forints for this purpose and is also examining ways of enabling even more people to take advantage of these allowances”, he said.
“The minimum wage will be increasing significantly from January; this will be the largest increase in the minimum wage since 1989”, Mr. Dömötör stressed. “The minimum wage is increasing by 15 percent to 127.500 forints, while the minimum wage for skilled workers is increasing by 25 percent to 161 thousand forints. These increases are made possible by the significant tax cuts for employers”, he added. These wage increases are based on the agreement brokered between employers’ and workers’ organisations and the Government.
As far as the individual sectors are concerned, specialists, nurses, law enforcement employees, teachers and higher education employees can all expect to receive pay rises, in addition to which social, cultural and county government office employees will also be taking more money home at the end of the month.
“Another important achievement is that pensions will be increasing by 1.6 percent, more than originally planned”, Mr. Dömötör said.
Accordingly, tomorrow will see the beginning of a year in which many Hungarian families will be able to take another step forward in their own lives. And this remains true even if we know that there is still much to be done and there are still many steps to be taken. We must not only enable everyone to find employment, but also ensure that everyone feels it is worthwhile to work”, the State Secretary emphasised.
With regard to Europe’s security, he underlined: “The countries of the European Union are preparing for new year’s eve with never before seen security measures. Following a year in which several acts of terrorism have been committed, these precautions are more than justified”, he added.
“It is clear that issues relating to Europe’s security must be completely rethought. With relation to this a suitable solution must be provided for the migration crisis, which is not a one-off occurrence, but something that we must count on in the long term”, Mr. Dömötör said. “The European Union cannot ignore the security and cultural risks of mass migration, because if it ignores them, that could have serious consequences”, he declared.
According to the State Secretary, this is one of the reasons why getting the mandatory relocation quota off the agenda for good is one of the most important tasks for 2017. “Instead of pointless and risky ideas, the EU must concentrate all its efforts on protecting its borders”, he said, adding: “Hungary and the Hungarian Government, as it has done so far, will in future continue to represent this standpoint with the greatest possible determination during all EU debates on the subject”.
“We have an interest in a strong Europe, and in it a strong Hungary. We would like Europe to be capable of defending the values, communities and traditions that have made it great”, Mr. Dömötör highlighted.