Gov’t to introduce third income tax rate, raise VAT
The government plans to raise the middle VAT rate from 15% to 20% and introduce a third personal income tax rate called “solidarity rate”, which would tax income exceeding Ft 6 billion a year 40%, business daily Világgazdaság reported after the coalition parties held a consultation with Prime Minister Ferenc Gyurcsány yesterday.
The simplified social security contribution (ekho) will remain in effect, but will still be considered experimental and the government will review its effects after one year.
The proposals, which form part of a package aimed at boosting budget revenue, will be presented to the National Interest Coordination Council (OÉT) today before they are submitted to Parliament next week.
ADVERTISEMENT
KSH Dismisses Reports of Eurostat 'Investigation'
Hungarian-American Business Chamber Established in Chicago
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.
