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FinMin on uneven division of tax burden

The majority of taxes are paid by a minority of taxpayers, which makes tax burdens heavier for those who bear them, said Finance Minister János Veres yesterday at an APEH conference for the Top Taxpayers.

Veres added that there are as few as 125,000 of the 320,000 companies and 3 million of the 4.3 million individuals who pay any tax at all. Similarly, while there are 10.5 million social security (TAJ) card owners, no more than 4 million pay the contribution — no wonder it is hard to ensure health care, he emphasized. But the government is resolute to involve as many people as possible to share public burdens.

Last year the ratio of measures increasing revenue and decreasing expenditure was 50%-50% in the battle against budget deficit, this year the latter weapon will be wielded with twice as much force. Veres admitted that it was a mistake to give a general 50% wage raise in 2002, because it was not accompanied by a staff decrease. The other reason he gave for the huge budget deficit is the rushed tax decreases of the past few years, which should have been counterbalanced by reining in expenses. (Gazdasági Rádió)