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Jul 24, 2019

Finance Minister: New measures to protect economic growth come into effect today

The Finance Minister stressed that the government wants to ensure that domestic growth remains at least two percentage points above the EU average in the coming years.

The Finance Minister has confirmed that two measures of the economic action plan announced in May have come into force today.

According to MTI, Mihály Varga said the plan’s aim is to protect the Hungarian economy amid a slowdown in Europe. He said the measures to rid businesses of advance tax payments will further streamline their tax administration, while an expansion of tax relief for developments will pave the way for more investments in Hungary.

The Minister stressed that the government wants to ensure that domestic growth remains at least two percentage points above the EU average in the coming years.

Minister Varga noted that the abolition of advance tax payments will affect 40,000 businesses, which means they will have fully 170 billion HUF (EUR 523m) to play with for an additional five months. They will pay their taxes in May when their tax returns are prepared, rather than in mid-December.

Finally, the Minister confirmed that the second measure to come into force today involves lowering the threshold for tax relief on developments for small enterprises from 500 million HUF to 300 million and to 400 million for medium-sized firms.

Photo credit: kormany.hu