Parliament approves changes to tax package
Tuesday, October 25, 2005, 15:13
Parliament on Tuesday approved changes to the government's tax reform package affecting payroll taxes and vehicle fuel taxes, but rejected proposals on the personal income tax regime which differed from the package. The five-year reform package was outlined by the government in June. MPs approved raising the limit on some in-kind contributions exempt from payroll taxes, including contributions for home building, which were raised from Ft 750,000 to Ft 1 million every five years, and contributions for school supplies, which rose from Ft 17,000 to Ft 19,000 annually. They also approved raising taxes on petrol from July 1, 2007, and diesel on January 1, 2008.
The program raises the upper limit of the lower personal income tax bracket gradually from an annual Ft 1.5 million to Ft 3 million by 2010. The tax package will generate Ft 1,000 billion less tax revenue during the period, Finance Minister János Veres told Parliament.