Plans To Reduce Personal Income Tax In Hungary By 2018

  • 16 Jun 2014 9:00 AM
Plans To Reduce Personal Income Tax In Hungary By 2018
Prime Minister Viktor Orbán said on Friday that he wanted to see the personal income tax reduced from the current 16% to below 10% by 2018. To attain this goal, the economy should grow instead of the current 2-4% by 4 to 6%, he told public Kossuth radio, adding that the latter rate is also feasible.

Concerning the introduction of the ad tax, he said that the advertisement sector must also take its share of public burden and this is not a matter of constraint but a matter of fairness. Consultation talks have been carried out and calculations shows that 9-10 billion forints can be collected from a sector that is large and works with huge profits, he stated, adding that it is a sectoral tax.

Prime Minister Orbán confirmed his commitment to creating full employment in Hungary, adding that the government would offer more public work opportunities in the coming period. "Instead of compensating people for not having work, we want to create work opportunities to them," he stated.

Concerning the on-going transformation of the municipal election system of Budapest, he highlighted that Parliament should pass a law in the current cycle to stabilise the operation of the city for decades. The Prime Minister emphasised that this will force the district mayors to cooperate with the Budapest mayor, which under the current circumstances, is the best option for the city. He praised incumbent Budapest Mayor István Tarlós for his work and stated that he can be recommended in good faith for the upcoming elections.

Addressing European affairs, Prime Minister Orbán pointed out that the European Union is witnessing a process of "legislation by stealth", with its Treaty being amended step by step, through the modification of details. He mentioned as an example the endeavour that the leader of the European Commission should be selected from the candidates of parties represented in the European Union and nominated automatically by the prime ministers of the member states.

This is an effort "to amend the European constitution by stealth", he said.

He also stated that he would soon leave for Portugal to attend a European People's Party summit. "We - and many others - will advocate the position that the key issues of Europe's renewal should be identified before making decisions on personnel issues," he emphasised. In the next phase, an European Commission president prepared to implement this programme should be elected, he added.

Source: Prime Minister's Office

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