“Hungary is gaining strength thanks to the performance of the Hungarian people, which in turn enables a reduction in taxes and an increase in wages without the need to increase government debt”, Minister of State for Government Communication Bence Tuzson said at a press conference on Saturday.
According to Mr. Tuzson, the people of Hungary can take another step forward thanks to the recent decisions of the Government and Parliament.
However, the Minister of State said it was a pity that the left-wing opposition, which during its period in office had believed in higher taxes and had been unable to achieve tangible growth despite “taxing the population to death”, leading more to increased poverty, had not voted in favour of the most recent tax cuts.
Mr. Tuzson highlighted that the current Government has been on the side of tax cuts since 2010, citing as examples the fact that personal income tax has fallen by over 50 percent, the creation of the family tax system, the continuous decrease of corporate tax and simpler taxation for small businesses, as well as the reduction of VAT on basic foodstuffs, internet access, catering services and new housing.
The Minister of State also pointed out that to facilitate the agreement the Government has come to with employers’ and workers’ representatives, it has decided to decrease the burdens on salaries with employer’s social contributions falling from 27 percent to 22 percent next year and to 20 percent the following year, in addition to which the Cabinet is also willing to consider further reductions in future.
In addition, Mr. Tuzson mentioned that small businesses are also receiving a significant tax cut thanks to the fact that next year simplified, flat rate tax can also be applied by small businesses who generate higher income of up to 1 million forints-a-month, double the current limit.