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At the Tax Administration European Union Summit in Budapest, Finance Minister Mihály Varga highlighted Hungary’s achievements in creating one of the world’s most competitive tax systems, serving as a foundation for future economic growth.
Minister Varga emphasized that artificial intelligence will play a key role in revolutionizing taxation, opening a new era in the field.
Since 2010, Hungary has implemented substantial tax reforms, drastically reducing taxes on labor and corporate taxes, making Hungary one of the most competitive tax jurisdictions globally. According to the Finance Minister, “the national government has built economic policy, including tax policy, on cooperation with economic operators and on valuing work.”
Tax revenues and real incomes have seen significant growth, and Hungary now ranks seventh out of 38 OECD countries in tax competitiveness.
As a result of these reforms, Hungary has reduced its tax burden from 40% to below 35% of GDP, one of the best results in the EU. Mihály Varga also stressed the importance of the new EU tax treaty, simplifying taxation for European companies, strengthening data reporting between member states, and which introduces digital platforms in public taxation. He noted that this treaty would improve control and efficiency across the EU.
Digitalization has been another cornerstone of Hungary’s tax administration. The National Tax and Customs Administration (NAV) has led initiatives like the Electronic Public Road Transportation Control System (EKÁER), online invoicing, and automated tax returns for millions of taxpayers.
Mr. Varga pointed out that these measures have put Hungary at the forefront of tax digitalization.
Additionally, the Hungarian EU presidency has focused on artificial intelligence to enhance tax solutions and cooperation across Europe.
In conclusion, Hungary’s tax reforms, digitalization efforts, and focus on artificial intelligence have positioned the country as a leader in EU tax policy, with Minister Varga stating, “this forum is a good opportunity to sum up results and plans and exchange experiences.”
Via MTI; Featured Image: Facebook / Varga Mihály