Businesses will save a little more than HUF 105 billion in the first phase of a program that aims to cut bureaucratic costs by HUF 500 billion the National Economy Ministry said on Thursday.
A reduction in the number of data employers are required to provide on employees from 23 to just one is expected to save companies HUF 5 billion. Eliminating a requirement to detail payroll contributions every month could save HUF 19.2 billion. Simplifying procedures for hiring and laying off workers is set to save HUF 16 billion. Changes to liability rules should save HUF 2 billion. Reducing paperwork for temporary employment in the farm or tourism industries could save HUF 3.4 billion. No longer making employee councils mandatory could save HUF 80-100 million.
Simplifying corporate tax returns should save companies HUF 15.2 billion. Eliminating the auditing requirement for companies with annual turnover under HUF 200 million is set to save HUF 5.6 billion. Reducing the number of data companies must report could save HUF 31.7 billion. Changes to the practice of levying fines on companies is expected to save HUF 7 billion.
The government will make changes to regulations and the law necessary to make the savings by June 30, 2011. It will submit to Parliament amendments to legislation needed to achieve the some HUF 400 billion in savings in the second phase of the program by August 31, 2011.
National Economy Minister György Matolcsy announced the HUF 500 billion bureaucracy-reduction package on Wednesday.
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