The targeted measures are set to accelerate SME growth and offer support for hiring more experts and specialists at small firms, he told a press conference.

Lepsényi noted that the SME sector hired 98,000 new people last year, raising the percentage of employees in the SME sector to 72% of a total of 2,915,000 employed by businesses. SMEs generated 53.9% of total 18.35 trillion forints (EUR 59bn) in gross added value and 58% of total revenues generated in the business sector, he said.

SMEs need financing opportunities from grants to capital-based financing, he said. The legal environment must be further developed and the burdens on businesses reduced, he added.

He said the planned cut in corporate tax to 9% will help 400,000 businesses, leaving 145 billion forints with Hungarian companies.

The personal income tax rate for self-employed people will also be cut to 9% next year, and this measure will help more than 180,000 self-employed entrepreneurs, leaving 1-1.5 billion forints in their pockets, he added.

Republished with permission of Hungary Matters, MTI’s daily newsletter.