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Tax reform package to demand more from rich

The government's new tax reforms will make bigger demands of the rich,
in the interest of "taking on a greater responsibility for those
with greater needs", Prime Minister Ferenc Gyurcsány told on a plenary
session of Parliament on Monday, news portal Portfolio.hhu reported. Alone the personal income tax cut will reduce the amount of every Ft 100 of income average earners pay to the state from Ft 21 to Ft 19, Gyurcsány said. He said he was calculating with monthly average income of Ft 156,000. Overall, income-based tax will fall from 38% to 35%, Gyurcsány said. The tax reforms will create security and predictability over the five-year period they are to be implemented. Gyurcsány said plans to reduce Hungary's main VAT rate from 25% to 20% would indeed result in lower prices, and help lower the
inflation rate. He added that Hungary is expected to reach a level
of "price stability" next year, by both the standards of the central
bank and the Finance Ministry.