The VAT rate should be raised and the personal income tax lowered at the same time or within as short a period as possible, Prime Minister Ferenc Gyurcsány said in an interview published in the latest issue of business weekly HVG on Thursday.
“The two steps must be taken at the same moment, or at least with the smallest possible difference in time,” Gyurcsány said.
Asked why he wants to raise the VAT rate when six months earlier he was opposed to such a move as it would pose a burden mainly for low-income households, Gyurcsány said he did not want to raise the VAT rate now either, but there was no other way to compensate for the budget revenue lost because of a reduction in income tax and payroll tax.
The government will announce a package of tax changes on February 16. (MTI-Econews)