Orbán: Sectoral taxes will stay; personal income tax will shrink

Banking

The special taxes on the the financial, energy, retail and telecommunications sectors will remain in place for as long as the ruling Fidesz government is in power, Prime Minister Viktor Orbán said today.

In his regular interview on public radio station MR1, Orbán also said that, by 2018, the government would introduce a single-digit tax on personal income, to replace the current 16%. He said that this reduction in personal taxes would be possible with 4-6% growth in GDP, and maintained that expectations of this level of growth are reasonable.

Part of the plan for increasing GDP involves a scheme to reduce unemployment to zero, by increasing the number of public works jobs that are available.

As for the controversial advertising tax, passed by Parliament on Wednesday, the Prime Minister said that the publishing sector must take up their share of the public burden.

 “We will collect HUF 9 bln - 10 bln forints from a sector that is large and works with huge profits," Orbán said, adding that the advertising tax was not about balancing the budget, but more about “justice”.

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