ADVERTISEMENT

Business tax to go up 10%, health insurance to double

Interview

Hungary's simplified business tax will be raised to 25% from 15% from September 1 and national health insurance contributions will double from 4%, business daily Világgazdaság said on Wednesday.

Prime Minister Ferenc Gyurcsány yesterday announced a general outline of the government's new program but it is not until June 10 that he is expected to publish the full details. Világgazdaság, quoting unnamed sources, said the hikes would be the main tools for moderating real wages. Plans call for this year's budget to raise 170 billion forints on the income side through various tax hikes while 200 billion forints will be cut from expenditures.
The paper speculates that among other income generating measures, the middle VAT rate will be raised to 20% from 15% and the gas price compensation system will be changed to gradually eliminate some subsidies. The latter move is expected to be implemented on July 1.
“By the middle of the government cycle, we want to meet the Maastricht budget criteria,” Gyurcsány said in a statement on Tuesday. The European Commission has forecast that the budget deficit will rise to 7% in 2007 if proper adjustments fail to materialize.   

 

ADVERTISEMENT

Rate-setters augur slower decline in CPI in 2022 Analysis

Rate-setters augur slower decline in CPI in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

Magyar Bankholding chairman to serve as CEO as well Appointments

Magyar Bankholding chairman to serve as CEO as well

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

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.