Parliament approves new taxation system for 2017
The Hungarian Parliament ratified a package of new taxes today which will lower the VAT rate on milk, eggs and poultry from 27% to 5%, and the charges for internet service and catering from 27% to 18%, according to Hungarian news agency MTI.
The new tax system will come into effect next year, and will bring a variety of other changes.
Vehicle fuel excise taxes will be connected to international oil prices, and the additional revenue generated will be spent on road maintenance.
Families with at least two children will be granted preferential taxation treatment under the new system, and the changes will save an estimated 350,000 households as much as HUF 15 billion.
The tax-free cutoff for employer payment of employee travel costs will be increased from HUF 9 to HUF 15 per kilometer.
The new system will also remove the HUF 30 million limit on tax preferences for investments by small and medium sized enterprises, and companies that cannot make use of the full R&D tax deductions against their corporate tax will be allowed to apply the deduction towards charitable donations.
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