Tax Cuts Ahead in Hungary Under New Laws Adopted by Parliament
- 5 Jul 2023 9:05 AM
- Hungary Matters
Despite a difficult economic situation in Europe and in Hungary the government will implement further tax cuts next year under the tax laws adopted by parliament on Tuesday, the finance ministry told MTI.
The package was passed with 136 votes in favour and 49 against.
The new legislation is aimed at maintaining a family-friendly tax system, keeping taxes on labour and businesses low, simplifying tax administration and further whitening the economy, the ministry said.
It added that companies employing the disabled would be granted more benefits, while the tax on vehicles would also be made simpler.
After years of Hungary “risking an infringement procedure” by keeping the excise tax on fuels under the EU minimum, the country “will have to raise the tax on petrol and diesel under pressure from Brussels”, the ministry said.
The statement noted that fuels consumed by airline companies were exempt from the excise tax and the contribution airline companies were currently required to pay would be maintained, with write-offs provided to aircraft with low emissions.
The government will go on with its efforts to whiten the economy, the statement said, adding that while the ratio of VAT fraud was 22.3% in 2010, it has been since reduced to 5.1%, putting Hungary in the forefront of the fight within the EU.
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