Tax cuts announced by the Hungarian Finance Minister

The government is preparing for the post-war situation by working to keep the economy on a trajectory to catch up with more developed economies, the employment rate at the current level and to draw further investments, Finance Minister Mihály Varga said on Monday.

Varga told a crisis management conference of the Budapest Chamber of Commerce and Industry that the measures taken to maintain stability and balance last year should be continued.

The government will, at the same time, propose amendments to tax regulations to ease the administrative burden on flat-rate taxpayers and tweak corporate taxes, he said. Under the proposal, flat-rate tax returns will be due quarterly rather than monthly, and the companies will be able to choose progressive tax payments up to a revenue of 25 million forints, he said.

Further, the government has launched a programme to improve SMEs’ energy efficiency, along with a scheme to help large corporations maintain manufacturing plants in the country.