Are you sure?

Gov't to discuss 2010 tax package

The government was to discuss the 2010 tax package on Wednesday, but will wait until Thursday to debate a proposed tax on assets, MTI learnt from government sources.

The government plans to raise the excise tax and the simplified business tax (EVA) to offset a drop in taxes on labor in 2010, MTI learnt.

The excise tax content of diesel fuel would rise by 7.6% and the excise tax content of petrol by 10%. The minimum tax on cigarettes would increase by 8.3% and the tax on drinks with alcohol content would be raised by 10%

The rate on the EVA - a flat tax on revenue with no chance for deductions - would rise to 30% from 25%.

The government would introduce a 30% tax on money going to tax havens.

The payroll tax would fall 5 percentage points to 22%, but would be levied on gross wages, reducing the tax wedge on average wages to 45.7% from 54%.

The corporate tax rate would temporarily rise to 19% until 2011.

The rate for the lower personal income tax bracket would fall to 17% from 18% and the upper limit of the bracket would increase to HUF 5 million from HUF 1.9 million. The rate for the upper personal income tax bracket would drop to 32% from 36%. The limit on tax write-offs would rise to HUF 3.2 million from HUF 1.25 million.

The government calculates that 91% of taxpayers would be in the lower income tax bracket.

The government plans to introduce a 0.25% tax on property valued over HUF 30 million and a 0.5% tax on property valued over HUF 50 million. A tax might also be levied on other high-value assets, such as cars, boats and airplanes. (MTI – Econews)