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Gov't programme to promote fairer sharing of taxation

The government's five year tax reform promotes fairer sharing of taxation, eliminating grey and black economy, improving competitiveness and expanding employment, the Minister of Finance said in parliament on Wednesday. The programme involves tax cuts totaling around Ft 1,000 bln (around €4 bln) and changes spanning over several years. These will probably serve increased stability and easier planning, János Veres Minister of Finance said. Of the three bills planned, one aims at reforming the current tax system, a second at introducing a simplified across-the-board tax (dubbed EKHO) for workers who invoice employers and earn up to Ft 25 mln (around EUR 100,000) annually and a third at introducing luxury tax on real estate worth more than Ft 100 mln (around €400,000), he said. The goal of the EKHO tax is to keep employers from evading healthcare and pension contributions due on their workers by signing bogus contracts that categorise them as entrepreneurs. The luxury tax is designed to promote social justice and obtain contributions to the national budget in line with residents' financial status.