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Crackdown on shadow economy yields up to Ft 40 bln

Hungary's budget revenue was boosted Ft 30 billion – Ft 40 billion in H1 of 2008 by a crackdown on the shadow economy, according to a report by a parliamentary committee set up to track the results of the measures.

The crackdown raised budget revenue Ft 80 billion – Ft 100 billion in 2007, the committee said in its first report.

Committee member István Fekete said the pace of the crackdown will only be sustainable if the government finds new means to deal with the problem. Lowering taxes is not enough, rather positive and negative incentives must be introduced, such as the establishment of a specialized tax court that would have the power to recover unpaid taxes more quickly, he said.

Committee member Péter Pataky said care must be taken to prevent the crackdown from having an effect other than that intended. (MTI – Econews)