Audit Office head sees room for gradual tax cut
The head of Hungaryʼs State Audit Office (ÁSZ) sees room for a gradual reduction in the 15% personal income tax rate, state news wire MTI reports citing daily Magyar Hírlap.
"In my opinion, the current economic conditions allow for a further reduction of the personal income tax in two or three steps," László Domokos said in an interview published in Thursdayʼs issue of daily Magyar Hírlap.
He said the 1.5% vocational training contribution paid by employers could also be cut to 0.75%-1.0% in light of the lower number of job-seekers, and he made a case for eliminating the 15% tax on interest.
"It isnʼt normal that we tax savings, but not high-interest, high-risk personal loans. There should be incentives for savings that mature in six months or less, too," Domokos said.
He said cutting the 27% VAT rate "wouldnʼt be worth it" as consumers would benefit not at all or only temporarily from such a measure. He added that VAT is the "most equitable" tax form as wealthier households which consume more also pay more VAT.
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.