Finance Minister Mihály Varga said the government will cut taxes by HUF 1,500 billion (EUR 4.1bn) in 2022.
Speaking in a video posted on Wednesday, the finance minister said the personal income tax rebate for families raising children will amount to a HUF 600 billion tax cut. The exemption from personal income tax of Hungarians under 25 will leave HUF 140 billion with young people. The government will cut payroll taxes to 13 percent from 17 percent, abolish the 1.5 percent vocational training contribution, reduce the social contribution tax by 2.5 percentage points, leaving an additional HUF 600 billion with companies. The decision to reduce the small business tax (KIVA) to 10 percent from 11 percent will cut taxes for the businesses concerned by HUF 10 billion. Extending the local business tax (HIPA) relief to SMEs into 2022 saves them HUF 150 billion.