ADVERTISEMENT

Hungary: The euro and a tax reform would save us

Banking

The economy research institute GKI Zrt advises the government to take some measures which focus only few areas but suitable for increasing confidence and suggesting reliability, said president András Vértes at a GKI press conference.

The most important ones are a multi-stage tax reform and a credible schedule of Euro adoption. GKI itself sets 2012 or 2013 and suggests that 2009 be targeted as the year of Hungary entering the ERM-II system. Otherwise Hungary might get stuck in a 3% GDP growth, he added. GKI presented its versions of a possible tax reform. A health care card of monthly Ft 10,000, jointly paid by the employer and the employee, could replace health care contribution (EHO) and one type of the health insurance tax in kind. Or the current 36% income tax bracket could be reduced to 28%; in the case of incomes higher than Ft 7.2 million a year it would grow to 40% and the upper limit of the “in kind” health insurance tax would be Ft 12,000 a month. Tax reform would cost the budget Ft 300 billion to Ft 350 billion. GKI also proposes fighting the practice of using company cars for private purposes. There are about 300,000 company cars registered in Hungary, but companies pay public dues on as few as 25,000 ones. (Gazdasági Rádió)

ADVERTISEMENT

Rate-setters augur slower decline in CPI in 2022 Analysis

Rate-setters augur slower decline in CPI in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

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.