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Thanks to the governmentʼs policy of reducing taxes, Hungary has become a model for tax cuts, Tállai argued.
He added Hungary had shown the biggest drop in its tax-to-GDP ratio among OECD members in 2017, too, and the second-sharpest decline in 2018.
Hungaryʼs tax-to-GDP ratio reached 35.8% in 2019 from 37.5% in 2018. The OECD attributed the decline to “a decrease in corporate income taxes following the removal of the compulsory tax advance supplement on business taxes, as well as smaller decreases in a number of other taxes”.
Tax-to-GDP ratios stood at 34.9% in the Czech Republic, at 35.4% in Poland, and at 34.7% in Slovakia last year, according to the OECD report.