Govt to continue payroll tax cuts in 2019

Banking

(Photo: MTI/Szilárd Koszticsák)

Hungaryʼs new government will continue to reduce the payroll tax and increase tax preferences for families with two children, Prime Minister Viktor Orbán said in his weekly interview on public radio on Friday, commenting on key elements of next yearʼs budget.

The payroll tax will be reduced by a further two percentage points in 2019, and the tax preference for families with two children will be raised to HUF 40,000 a month, Orbán said on Kossuth Radio, as cited by national news agency MTI.

Orbánʼs previous government reduced the payroll tax by five percentage points from 27% from 2017, and by a further 2.5 percentage points from 2018. The government linked further possible payroll tax cuts to real wage growth.

Orbán said he had also asked his government to see that the 2019 budget has sufficient funds to support economic developments, corporate developments, innovation, adaptation to technological change, and research and development.

Unemployment, the general government deficit and state debt are on the decline, while wages, employment and the performance of the Hungarian economy are on the increase, providing a good foundation for the 2019 budget, he added.

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