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Jan 02, 2020

Finance Minister: New measures to protect the economy have come into effect

Mihály Varga, Minister of Finance, said the new measures have been implemented to aid families and businesses.

New measures to protect the economy, alongside targeted tax cuts, have now come into effect.

Mihály Varga, Minister of Finance, said the new measures have been implemented to aid families and businesses.

The minister said tax on small businesses will be cut to 12 percent, reducing the burden on 45,000 Hungarian firms. The government is suspending the tax on advertising by 2022 and this, he added, would contribute to the market’s expansion.

VAT on accommodation is being cut from 18 to 5 percent, resulting in HUF 32 billion (EUR 96m) remaining in the pockets of tourism businesses.

Tax administration is also being simplified, with four different contributions combined into a single tax, he said, adding that one type of tax will be abolished altogether.

Households in villages and construction firms in rural areas will be helped thanks to a tax refund of up to 5 million forints for small settlements. Also, the government is raising 15 billion forints in capital so that businesses can more easily access cheaper investment loans.

Minister Varga said that in order to boost research in Hungary, R+D development support will be increased by 32 billion forints next year.