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Nov 23, 2016

Hungary takes measures to reinforce and stabilize economy

Hungary has been growing stronger, the country’s macro-economic indicators have improved significantly in recent years and the country’s economic stability warrants large-scale plans

The Hungarian government has taken a number of positive steps and refined its tax policy in order to stimulate and safeguard the economy.

According to Mihály Varga, minster for National Economy, the government relies on Hungary’s tax authority not only as a body that safeguards fiscal revenues, but also as a supporter of economic policy, and that is why the Hungarian Tax and Customs Administration has been entrusted with new tasks to reinforce and stabilize the economy.

Minister Varga made the comments during an interntional tax policy conference attended by Secretary General Kunio Mikuriya of the World Customs Organization and Executive Secretary Miguel Silva Pinto of the Intra-European Organization of Tax Administrations.

Hungary has been growing stronger, the country’s macro-economic indicators have improved significantly in recent years and the country’s economic stability warrants large-scale plans, the minister pointed out.

MTI reports that in order to make headway in terms of economic growth and competitiveness productivity must be improved further, the share of workers with adequate skills and the volume of investment must be increased, and SMEs must be supported.

The Hungarian government has always favored tax reduction, the minister noted. That is why yesterday’s deal on raising the minimum wage and the guaranteed minimum wage can be regarded as a major achievement, he said. This, along with the reduction of payroll taxes, may add momentum to the economy as of 2017 and enable a higher economic growth rate than the current 2-3 percent per year, he stressed.

Additionally, the objectives to make tax collection more efficient, cut administrative costs and follow global trends have necessitated the integration of taxation and customs offices as well as financial crime investigating bodies.  

The combined effect of the economic results, a new tax regime and a new tax authority have together led to significantly higher fiscal revenues and improved taxpayer morale.

Borders cannot stop tax fraudsters, he said, referring to the importance of cooperation between the tax authorities of the EU. Minister Varga expressed hope that through international cooperation and the rising number of countries which are joining the multilateral systems for the exchange of information, existing tax loopholes will be soon closed.