Finance

Hungary’s Tax Office Collected 41.2 Billion Euros In Revenue Last Year

Hungary’s tax authority NAV collected 12,792 billion forints (EUR 41.2bn) in revenue last year, more than 30 billion forints over the target, state secretary for tax matters András Tállai said.

NAV staff met quarterly performance incentive thresholds and got their bonuses over the holidays, Tállai said. He said that tax cuts introduced at the start of the year would save businesses some 580 billion forints, or 1.5% of planned GDP for the year. Tállai said the tax burden-to-GDP ratio would decrease from 39% to 38% by the end of 2017. Revenue from special taxes increased by 4% last year, or 466 billion forints, he said. He noted that the mandatory use of tills connected directly to the tax office has been expanded to ten new services.

Tállai also noted that payroll taxes have been reduced from 27% to 22%. He said the six-year deal signed late last year between the government, employers and unions that pairs marked increases in the minimum wage with payroll tax cuts could see payroll taxes fall by 15.5 percentage points by the end of the six-year period. Tállai said the payroll tax cuts would save businesses 380 billion forints this year, while a further 2-percentage point cut to be implemented next year would boost those savings to 540 billion forints.

via hungarymatters.hu and MTI