Economy Minister: Government not ruling out single-digit personal income tax rate

The government has not given up on its plan to bring the personal income tax rate into the single digits from the current 15 percent rate, the economy minister said in an interview to Friday’s edition of the daily Magyar Idők.

The government would only be able to pass another larger tax cut if all the conditions for it are in place: a stable and growing economy and an improving jobs market, Mihály Varga told the paper. The country must also be on a sound financial footing and make sure that it maintains its “hard-fought” balanced budgetary position, he added.

Varga added that when deciding on tax cuts, it was important to consider the country’s capacity for them. Unlike the Socialist governments of the past, the current Fidesz-led government is not offering “irresponsible handouts” or engaging in “wasteful spending” to attract votes, he said.