OECD releases tax recommendations
In its analysis entitled „Reforms for Stability and Sustainable Growth,” OECD suggests that tax reforms should focus on reducing the tax wedge on labor, particularly via lowering employers’ social security contributions.
However, any plans to cut the tax burden should not be implemented before a sustainable spending consolidation is on track. The Organization for Economic Co-operation and Development report maintains that Hungary’s budget deficit must be pushed below 3% of GDP and that economic reforms must continue, said Aart de Geus, Deputy Secretary-General of OECD in Budapest. Geus also said that Hungary needs to further decrease the size of the country’s public sector. The most important message in the OECD’s report is that Hungary should continue to implement its program of fiscal consolidation, said Finance Minister János Veres, adding that the survey also shows that continuing economic reforms will increase investors’ confidence. OECD officials said that the organization is expecting Hungary to achieve economic growth of 1.5% to 2 % this year and 3% to 3.5% next year. If Hungary goes on with the current reform program and manages to further decrease the budget deficit, the country stands a good chance of becoming part of the EU’s developed region, said Geus. (Gazdasági Rádió)
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.