Although there are positive elements of planned measures by the government, the country needs more to overcome its competitive disadvantage, the American Chamber of Commerce in Hungary (AmCham) said in an analysis.
The government measures do not reduce the scale of the public tax burden, and therefore do no enough to improve competitiveness, AmCham said.
AmCham conceded that it is not easy to maintain balance in the current situation, but said it was also important to appreciate points of competitiveness. Swiss competitiveness research company IMD ranked Hungary 45th on a list of countries in 2009, down from 38th in 2008, the chamber noted.
AmCham welcomed the planned reduction in the payroll tax and acknowledged that the restructuring of the tax system would help preserve jobs. At the same time, it said it was sorry to see the government introduce four new taxes and build the “solidarity tax” into the corporate tax. (MTI – Econews)