Hungary’s Tax Package For 2014 Includes New Tax On Banks And Sugary Drinks
- 24 Oct 2013 9:00 AM
While 250 000 new families are happy with the extended family tax credits and small businesses are satisfied with the support they will receive, banks are not dancing with joy at the introduction of new tax laws for 2014. The Hungarian government submitted next year’s tax package to the Parliament last week, which includes just a few drastic, but several minor changes.
The new tax package benefits low-earners, further lowering administrative burdens and providing additional support to businesses.
The key change in the amendments is the extension of the family tax allowance, which will especially serve the interests of low-income families. It will be deductible from the 7% health and 10% pension contributions and around 250 000 more families will benefit from it.
Taxes designed for small enterprises, the flat-rate personal income tax, and the simplified entrepreneurial tax will be also moderately softened.
Banks, however, will face another punishing tax, which could take HUF 17 billion out of their pockets, but in exchange, they will be able to reinvest their rainy-day funds for their own benefits.
Next year’s tax package also aims to increase the so-called csipszadó: taxes on sugar-sweetened beverages.
The commonly discussed plans to lower VAT on meat products and to introduce a higher VAT on luxury goods remain unclear, but the government still has a couple of weeks to decide on this matter.
Source: ORIGO
By Tímea Klincsek for XpatLoop.com
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