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Employers want payroll tax cut 8-10 percentage points

Hungarian industry leaders pressed for an 8- to 10-percentage-point comprehensive tax reduction and an accelerated entry into the ERM-2 at a plenary session of the National Interest Coordination Council.

Ferenc Rolek, the spokesman for the employers side at the talks, which also involve unions and government representatives, said workers do not feel the weight of the crisis, but Hungary's financing could become a big problem if taxes are not cut 8-10 percentage points in the interest of improving competitiveness.

The government has proposed cutting the payroll tax by five percentage points to 27%.

Construction magnate Sándor Demján, who heads the National Association of Employers and Entrepreneurs (VOSz), proposed the government lower the corporate tax rates for industries hardest hit by the crisis. The corporate tax rate could be lowered from an effective 20%, including the 4% “solidarity tax,” to 5% for industrial, farm and transportation companies and banks. (MTI – Econews)