Hungarians Hoard Cash To Avoid Taxes
- 6 Mar 2014 8:00 AM
Hungarians kept a record amount of cash at the end of last year, which analysts say is likely to be linked to the avoidance of the bank transaction fee and other types of tax, business daily Világgazdaság said. According to preliminary data from the central bank of Hungary, cash holdings came to 2.6 trillion forints (EUR 8.4bn) at the end of 2013, up 11% on 2012.
Money held in bank accounts totalled 2.3 trillion forints, up 18% on the previous year. Money kept in current accounts exceeded funds in high-interest deposits, the paper said. Analysts told Világgazdaság that the introduction of the transaction fee last year may be the reason while people are keeping more cash.
Another reason may be the low interest rates on savings, which are also subject to 16% personal income tax and 6% health-care tax since August last year.
Source www.hungarymatters.hu
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