Hungarian tax reforms will call for cutting deductions

Banking

Avoiding a decrease in budget incomes while implementing tax reforms aimed at reducing the tax burden can only be managed, if the complicated system of allowances and deductions is cut down as well, a study made by the Finance Ministry shows. 

It was presented at the sitting of the Economic Competitiveness Forum (GVK) yesterday. Another important point is that the reform must be extended to the system of social security contributions, too. However, the effects of a tax reform are hard to estimate, associate of the Ministry, Ágota Scharle added. Because of that, the introduction of a tax reform should only be carried out among stable fiscal conditions, she added. The forum also suggested that the VAT level on tourism-related services should be decreased in order to improve the competitiveness of the branch. (Gazdasági Rádió, Napi Gazdaság)

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