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Government to eliminate income tax benefits for full-time employees by 2014

Hungary plans to discontinue income tax benefits for full-time employees starting in 2012, Bloomberg.com reported yesterday, citing business daily Napi Gazdaság.

The move, included in the government's new covergence program, will increase the tax burden of full-time employees earning up to HUF 230,000 a month and the personal income tax for minimum wage earners would rise to 16 percent by 2014, from under 3 percent two years ago, the newspaper said.

The measure is expected to save the budget HUF 180 billion in 2012 and HUF 230 billion in 2013.