Economy ministry exploring effects of VAT reduction

Banking

The Economics Ministry is looking into the potential fiscal and economic effects of a VAT rate reduction but reducing the personal income tax to a single-digit has remained a priority, the ministry told Hungarian news agency MTI yesterday. 

MTI asked the ministry to comment on a remark made by Economics Minister Mihály Varga at last Fridayʼs Business Leaders Forum where the minister said that in addition to a single-digit personal income tax rate the current 27% VAT rate could also drop.

The ministry said that reducing the taxes on labor remained the focus of the governmentʼs tax policy. Should there be fiscal room to maneuver, the VAT reduction could also be put on the agenda, it said.

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