• Home
• Channel: Finance
• Hungary Leads Europe In Decline Of Tax-To-GDP Ratio

Hungary Leads Europe In Decline Of Tax-To-GDP Ratio

• 3 Dec 2018 8:31 AM
• Hungary Matters

Hungary’s tax-to-GDP ratio – the sum of taxes and net social contributions as a percentage of GDP – fell by 0.9 percentage point last year, the biggest decline in the European Union, state secretary of the finance ministry Norbert Izer told MTI, citing fresh data released by Eurostat.

The data show Hungary’s tax-to-GDP ratio fell to 38.4% from 39.3% in 2016 while the average ratio increased to 40.2% from 39.9% in the European Union.

With the lowering of the corporate tax rate to 9% in 2017, Hungary not only became more attractive to international investors, but also left a total of 150 billion forints with more than 580,000 domestic businesses, Izer said.

The government’s tax policy focuses on cutting taxes and simplifying tax administration and the tax cuts will continue, he said.

Hungary will be able to retain its excellent position in the EU ranking, Izer said, adding that the government aims to halve the time businesses spend on tax-related administration by 2021.

• How does this content make you feel?
• I love it
• I like it
• I dislike it

• Tax GDP

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this newsletter published on week days covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI.

Explore More Reports

Consumer Price Index Inches Up in Hungary - Basic Food Prices Up Steeply Again

• 13 Nov 2024 11:36 AM

Hungary's annualised consumer price index reached 3.2pc in October, inching up from 3.0pc in the previous month, data released by the Central Statistics Office (KSH) on Tuesday show.



High Savings Rate of Hungarian Households Well Over Average for Region

• 13 Nov 2024 7:18 AM

Hungarian households' high savings rate and net financial assets, well over the average for the region, are a "growth reserve" for the national economy, if they can be channeled to corporate financing, Barnabas Virag, a deputy governor at the National Bank of Hungary (NBH), said at a conference organised by the Budapest Stock Exchange.



GDP Falls in Hungary - Reasons for Weak Economic Performance Explained

• 1 Nov 2024 8:15 AM

Hungary's GDP contracted 0.7pc year-on-year in the third quarter, adjusted for seasonal and calendar year effects, a first reading of data released by the Central Statistics Office (KSH) on Wednesday shows.



Updated: NBH Sees Inflation Slowing Further in September in Hungary

• 27 Sep 2024 6:00 AM

August's 3.4pc CPI was in line with the National Bank of Hungary's expectations, and the central bank sees inflation falling to 3.1pc in September, Andras Balatoni, an NBH director said.