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Orbán announces further economic measures

Prime Minister Viktor Orbán announced more measures to ease the economic impact of efforts to contain the coronavirus at a daily press briefing on Monday, state news wire MTI reports.

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Orbán said more than 81,000 sole proprietors and businesses registered to pay the Itemized Tax for Small Businesses (KATA) would be exempt from monthly tax payments till the end of June. The measure applies to trades such as hairdresser, cosmetician, plumber, gas-fitter, carpenter, sports trainer and home care provider, he added.

Back taxes owed by these KATA businesses will be deferred, Mr Orbán said.

Businesses that opt for KATA pay a flat monthly HUF 50,000 instead of corporate or payroll tax. The annual revenue threshold for KATA companies is HUF 12 million.

Orbán said evictions and forfeiture of property would be suspended until the end of the state of emergency.

Eligibility periods for mothers now on child leave will be extended until the end of the state of emergency, he added. 

Last Wednesday, Hungaryʼs government announced initial measures to protect the economy from the effect of the coronavirus. Among them were moratoriums on payment of principal, interest and fees on all corporate and retail loans until the end of the year.