Hungary’s tax-to-GDP ratio fell 0.9 percentage point last year, the largest decline in the European Union.
Citing fresh data released by Eurostat, finance ministry state secretary Norbert Izer revealed that the report shows Hungary’s tax-to-GDP ratio fell to 38.4 percent from 39.3 percent in 2016 while the average ratio increased to 40.2 percent from 39.9 percent in the European Union.
Izer noted that with the lowering of the corporate tax rate to 9 percent in 2017, Hungary not only became more attractive to international investors, but also left a total of 150 billion forints with more than 580,000 domestic businesses.
The state secretary said the government’s tax policy focuses on cutting taxes and simplifying tax administration and the tax cuts will continue.
Hungary will be able to retain its excellent position in the EU ranking, the state secretary said, adding that the government aims to halve the time businesses spend on tax-related administration by 2021.