Parliament could consider 9% personal income-tax rate next autumn


Hungary’s parliament could consider lowering Hungary’s flat-rate personal income tax to 9% from the current 16% next autumn when considering tax legislation to come into effect in 2015, National Economy Minister Mihály Varga said in an interview with business weekly Figyelő published yesterday.

Reducing the tax could cut budget revenue by about HUF 500 billion, but Hungary’s rising economic growth could offset the shortfall, Varga said. The national economy minister said that the government has not yet decided whether it will spend the excess budget revenue resulting from Hungary’s growing economy on tax cuts, investment or social measures.

Varga noted that public sector employees in Hungary have not received wage increases in six years, adding that lack of wage hikes in this sector lead to deterioration in the quality of services. The growth path is clear until the end of 2014, he said, the question is how it can be continued and whether there will be further economy policy measures boosting investments.

Varga said that the continued objective of the government is to remove forex-based bank loans from Hungary’s credit market.


Business Sentiment Up, Consumer Confidence Down in September Analysis

Business Sentiment Up, Consumer Confidence Down in September

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed


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.