Fidesz will cut taxes and simplify the tax system, and has no intention of getting rid of the simplified business tax (EVA) or the simplified contribution tax (EKHO), a senior Fidesz official said on Friday.
Péter Szijjártó dismissed an accusation by the Socialist Party spokeswoman, Bernadett Budai, that Fidesz was secretly planning to scrap the tax regimes brought about by the Socialist government under Ferenc Gyurcsány.
Under EVA, small businesses are taxed a flat rate of 25% but enterprises under the EVA regime must pay non-reclaimable value-added tax at 20% on their invoices.
EKHO means better and simpler conditions for a list of professions typically in the cultural and media sectors. Annual income must stay below HUF 25 million and the minimum mandatory tax base for social security contribution payments is set at the minimum wage. But employees in this system cannot claim jobless benefits and any sickness benefits must be covered by a private insurance policy. Most people in this category pay into private pension funds to top up their state pension. (MTI)