Official: Broader job preservation tax benefits could save farmers HUF 6 bln

Banking

Broadening eligibility for agriculture sector job preservation tax benefits to Hungarians between 25 and 55 years of age could save farmers HUF 6 bln, deputy state secretary for tax affairs Zoltán Pankucsi said on public television yesterday.

The extension of the benefits, part of the governmentʼs job protection action plan, could affect some 35,000 workers, Pankucsi told news channel M1. Since 2013, tax benefits have been available for employers in the farm sector for hiring people younger than 25 or older than 55, Pankucsi noted.

Changes expected to come into force from July could extend the benefits to employees between the two age thresholds, he said. The tax benefits saved Hungarian companies HUF 93 bln in 2013 and HUF 125 bln in 2014, he said. In an interview with Hungarian economy daily Napi Gazdaság published yesterday, Pankucsi said the government could introduce a single corporate tax rate from 2016, if certain conditions are met.

"According to our plans, we will have a single rate of corporate tax, which will be around 10%. This change will only enter into force at the start of 2016 if it is certain that fiscal conditions will be met. We do not wish to endanger the deficit target of the budget with this step," said Pankucsi. Currently Hungary has two corporate tax rates. The main rate is 19%, while there is a preferential rate of 10% for smaller firms.

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