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Tax package seeks to bring back honour to work

Bringing back honour to work is at the centre of the government's 2010 tax package, Prime Minister Gordon Bajnai said in Parliament on Monday.

The government wants to tax consumption and assets to a greater degree, countering a reduction in the tax on labour, Bajnai said. The benefactors of the tax package are those who choose to work and those who provide jobs. "I want to reward those who are carrying the country on their shoulders today, too," he said. The reduction in the tax on labour is "of a size unseen in two decades," Bajnai said. Next year, nine out of ten Hungarian employees will be taxed in the lower personal income bracket, he added.

The government's planned changes to the personal income tax system will benefit taxpayers in both the lower and upper brackets, with the exception of those 10,000 people who take home a monthly HUF 2 million or more, Bajnai said. 

Average wage earners will take home a month and a half more wages next year than this year because of the tax changes. Bajnai said the luxury tax served social solidarity. "Every bit" of the revenue from the tax will go toward preserving jobs and creating new workplaces, he added. (MTI-Econews)