Businesses may have to wait till Q3 for payroll tax cut

Banking

pixabay

Hungaryʼs government could wait until as late as October of this year to reduce the payroll tax by another two percentage points, state secretary for tax affairs Norbert Izer said at a press conference on Thursday, state news wire MTI reports.

Image: Pixabay

The plans are to reduce the payroll tax by a further two percentage points from July or October, Izer said.

Employers had earlier pressed the government to bring forward the planned payroll tax cut to the start of the calendar year rather than July 1, when last yearʼs reduction took effect. But the government rejected the request, citing fiscal reasons, according to one business association leader.

Under a deal the government sealed with employers and unions late in 2016 linking payroll tax cuts to wage rises, the payroll tax was reduced from 27% in 2016 to 22% in 2017 and 19.5% in 2018. From 2019, the agreement stipulates that the payroll tax will be reduced a further four times by two percentage points on each occasion as long as the gross average private-sector wage rises at least 6% year-on-year in the first quarter of the given year.

Izer said the payroll tax cuts made since 2016 had saved businesses HUF 2.600 trillion.

ADVERTISEMENT

Business confidence edges up as consumer sentiment weakens Analysis

Business confidence edges up as consumer sentiment weakens

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

Energy Efficiency: End-users, Energy Traders and Other Stake... Inside View

Energy Efficiency: End-users, Energy Traders and Other Stake...

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.