Gov’t considers freezing income tax brackets until 2010
At a first reading of the 2007 budget on Wednesday, the government considered freezing personal income tax brackets until 2010 and raising the income level requiring individuals to pay the so-called solidarity tax, business daily Világgazdaság reported on Friday.
The government could decide to raise the personal income level requiring individuals to pay the so-called "solidarity tax" from an annual Ft 6.3 million, excluding pension contributions, in 2006 to Ft 6.7 million in 2007. The first reading keeps VAT rates unchanged at 5% and 20%, and it also freezes the bottom end of the top, 36% tax bracket at an annual Ft 1.7 million until 2010. The payroll tax rate also remains unchanged at 29%.
In its convergence program for the country submitted to Brussels in September, the government said it would consider changing the tax regime from 2007.
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