Hungary: Economic society urges tax reform, state spending cuts to spur growth


The Hungarian Economic Society (MKT) has urged the government to reform the country’s tax system and reduce state spending in order to spur growth.  

MKT noted that economists agree that Hungary’s growth potential had been consistently overestimated. It put the country’s growth potential at 3.0-3.5% rather than at 4% as earlier thought. To allow the country to achieve its growth potential, MKT said government should carry out sustainable tax reforms that reduce the country’s income centralization. If the tax reform is to work, however, the government must also cut expenditures Ft 1,200-1,500 billion.

The most effective reforms would include a reduction of the tax on labor, lessening the tax burden for SMEs and using exemptions from payroll tax and social contributions as employment incentives, MKT said. The fall in revenue could be made up for by cutting government expenditures, raising VAT and, probably, introducing a one-off property tax. MKT said growth should not be influenced unnecessarily by exchange rate policy. (MTI-Econews)


Consumer price levels below EU avg in 2020 Analysis

Consumer price levels below EU avg in 2020

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Breast cancer screening at Dr. Rose Private Hospital Interview

Breast cancer screening at Dr. Rose Private Hospital

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.