ADVERTISEMENT

Competition council recommends simplifying local business tax

Government

pixabay

The National Competition Council recommends that the government should amend the local business tax in a way to encourage economic growth, Finance Minister Mihály Varga told the press after the council held its first meeting in 2020 on Tuesday, state news wire MTI reports.

Image: Pixabay

They propose that it should be made possible to write off a bigger part of depreciation or research and development expenses from the tax base as well as eliminating the year-end tax replenishment obligation. The write-off of R&D costs would be five times the present level, Varga said.

They are seeking ways to maintain the momentum of Hungaryʼs economic growth, and the proposed measures are among the possible incentives. 

He admitted that the local business tax is an important source of municipal revenues, bringing in HUF 827 billion last year, and they plan to consult local councils on the proposals.

Varga said he will inform the government of the proposals at the next cabinet meeting. He expects the law to be amended this year and the preferences to take effect by January 1, 2021 the latest.

ADVERTISEMENT

Consumer, business confidence reach 2-year high - GKI Analysis

Consumer, business confidence reach 2-year high - GKI

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.