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Feb 08, 2019

Further tax cuts planned in Hungary over the coming years

Mihály Varga said the Hungarian cabinet wants to remain “the government of tax cuts” and over the coming years wants to introduce the biggest cuts in administrative burdens related to taxation

The finance minister has revealed that there are further tax cuts planned in Hungary over the coming years.

Mihály Varga said the Hungarian cabinet wants to remain “the government of tax cuts” and over the coming years wants to introduce the biggest cuts in administrative burdens related to taxation.

The minister added that Hungary’s economic indicators have been positive for years, and last year’s growth rate may even exceed 4.6 percent.

Minister Varga said the 5.2 percent growth registered in Q3 was the third largest rate in the European Union, adding that certain analysts project growth to exceed expectations again this year. However, the minister warned that global economic growth was beginning to pass its peak, and said it was worth preparing for a slowdown.

The minister added that measures should be introduced to preserve the country’s economic achievements, adding that NAV would have an important role to play in this, noting that taxes account for 95 percent of budget revenues.

Though the government introduced a number of tax cuts last year, this has not put a dent on revenues, Varga said, pointing out that budget revenues last year were up by 851 billion forints (EUR 2.7bn) from 2017.