Hungary: Efforts to curb black economy advance

Banking

By a safe estimate, an extra Ft 50 billion ($281.7 million) tax income is being received due to stricter policies against the black economy. Annual tax payments are Ft 186 billion (1,05 billion) in excess of expectations (out of this, Ft 25 billion comes from inflation), according to the Ministry of Finance.

For comparison: estimated size of black economy is 18% of GDP, which results in annual Ft 2000 billion less tax payments. Controls in notably the construction and tourism industries have became very frequent, and more unregistered workers were found in the first 8 months (50,800), than in all the year of 2006 (approx. 42,000). Audits of private property also helped in curbing the black economy, and not only because of the Ft 20 billion extra tax income, but also because of the extra information provided by these procedures, and the further investigations they lead to. When coming across illegal operations, the tax department will frequently make estimates to calculate the amount of unpaid tax or VAT.(Napi Gazdaság)

ADVERTISEMENT

SMEs Augur Higher Sales, Profit Next Year Analysis

SMEs Augur Higher Sales, Profit Next Year

Hungary Open to New Double Taxation Avoidance Treaty With U.... Int’l Relations

Hungary Open to New Double Taxation Avoidance Treaty With U....

Hungarian-born Physicist Ferenc Krausz Shares Nobel Prize Science

Hungarian-born Physicist Ferenc Krausz Shares Nobel Prize

Summer Tourism Season Breaks Pre-COVID Record Tourism

Summer Tourism Season Breaks Pre-COVID Record

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.