Are you sure?

GKI questions VAT reduction

The government's decision to cut the VAT part of the petrol price from 25% to 20% from the first week of October was politically "acceptable", but economically objectionable, the Managing Director of economic research company GKI Rt, Miklós Hegedus, said. The government has fueled the distrust of investors, and the central budget cannot tolerate further losses in the revenues, Hegedus added. The Managing Director projects an increase in the consumption of petrol, which would be an "unfortunate" turn of events. Hegedus also warned that should the deficit of the central budget soar even higher, the government may have to introduce additional taxes to compensate for the losses. (Nv 5) P.O.