Another measure will allow tax to be paid only from the sixth year of any utility pipe construction or reconstruction project. The bill also allows local councils to support the work of general practitioners by making them exempt from local business tax.

This measure could affect up to 6,300 GPs, leaving each of them with up to 200,000 forints (650 euros) annually, he added. The tax bill reduces the personal income tax to 15%, raises tax breaks for two-child families and reduces the VAT on unprocessed pork to 5%.

The tax on banks is also reduced and while plans are to reduce the advertisement tax, too, this will be submitted in a separate bill, Tállai said. Economy Minister Mihály Varga submitted the 2016 budget bill to parliament on Wednesday, pledging to leave 170 billion forints (EUR 557m) more with households next year.

Meanwhile, Tállai told a conference organised by daily Világgazdaság that one of the biggest achievements of the past years was the European Union lifting the excessive budget deficit procedure against Hungary.

This was made possible by the government’s single rate personal income tax regime, the system of special sectoral taxes, notably the banking tax as well as promoting a fairer share of the public burden, he said.

He added that recent efforts included the whitening of the economy, the installation of online cash registers and electronic road tolls.

Tállai said next year’s budget would earmark an additional 70 billion forints to the foster jobs scheme, meaning that there will be some 250,000 foster workers next year.

The government aims to have 4.4 million people holding jobs by 2018, reducing the unemployment rate to 5.5%. There are currently 4.1 million people working, he added.

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