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Varga: Payroll tax could fall to 15% by 2022

The Hungarian government is planning to further cut the payroll tax rate to 15% by 2022, Minister for National Economy Mihály Varga said today. This year, the payroll tax was reduced from 22% and is set to be reduced to 20% in 2018.

Hungaryʼs government aims to support and strengthen the countryʼs convergence with developed industrial nations. It wants to achieve this goal by boosting competitiveness, creating more quality jobs and strengthening Hungarian companies, Varga said at a conference organized by the HG Media group today, according to Hungarian news agency MTI.

The minister said that the cabinet is committed to maintain its economic policy, along the lines of providing incentives for investments, creating jobs, cutting taxes and raising wages.

Varga added that Hungary is expected to see improved productivity, technological developments and capacity expansions to provide impetus for economic growth over 4% both this year and the next, MTI reported.