Government details 2017 tax changes

Budapest, May 3 (MTI) – Hungary’s government on Tuesday unveiled more details of tax changes planned for next year.

The government wants to tie the excise tax on vehicle fuel to global energy prices and spending the extra revenue on road renovation, state secretary for tax affairs András Tállai said at a press conference, outlining a tax bill to be submitted soon to parliament.

Excise tax on fuel would rise by 10 forints for diesel and 5 forints for petrol if the global price of Brent crude drops below 40 US dollars, in one scenario, and 50 dollars in the other, generating an additional 20 billion forints in budget revenue.

The excise tax on tobacco will rise by September 1, 2016 to comply with European Union rules, Tállai said. The increase must reach 29 percent by the end of 2017, he added.

Changes to tax preferences for families with two children will save 350,000 households a combined 15 billion forints.