“The Government is continuing its investor-friendly economic policy, as served by both the 2020 budget and certain measures of the Economy Protection Action Plan”, Minister of Finance Mihály Varga declared at a business forum organised by the American-Hungarian Chamber of Commerce.
“As a result, taxes will continue to fall, the business environment will continue to improve, and it will be easier for enterprises to receive credit in the interests of promoting investment”, Mr. Varga emphasised.
The Minister explained that the measures included in the 13+1 point Economy Protection Action Plan will provide some 500 billion forints (EUR 1.56bn) in assistance to the Hungarian private sector: social contribution tax, small business tax and accommodation tax will all be reduced, while the rate of advertising tax will be cut to zero percent. The simplified business tax and end of year tax pre-payments will be abolished, in addition to which the regulations concerning development tax subsidies will also become more favourable, while the Government is also facilitating business loans by providing more credit guarantee instruments.
The Minister also spoke about the fact that Hungary’s budget for next year is primarily about supporting families, providing assistance and security to families raising children. In addition, the Economy Protection Action Plan and maintaining the country’s security are also major elements of the budget, enabling Hungary to maintain its position as one of the best investment destinations in Europe. The fact that this is the fifth year in a row in which the Government has submitted the draft budget for the following year six months in advance means calculability and plannability for enterprises.
With relation to Hungarian-American relations, Mr. Varga told the press: Economic cooperation between the two countries is outstanding; the United States is Hungary’s most important export partner outside Europe and the largest investor in Hungary from outside Europe. Last year, our foreign trade balance rose to 1.4 billion dollars, an increase of 40% compared to 2017. The 1700 American-run enterprises operating in Hungary provide jobs to over 100 thousand people.