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Govt Measures to Leave HUF 200 bn with Businesses, Households

MTI-Hungary Today 2020.04.17.

Finance Minister Mihály Varga on Thursday detailed government measures to mitigate the economic impact of the coronavirus pandemic that will save businesses and households some 200 billion forints (EUR 570m).

A reduction in the payroll tax from 17.5 percent to 15.5 percent from July, the result of an earlier agreement between unions, employers and the government, will save companies 160 billion forints, Varga said in a video on Facebook.

Companies whose businesses are suffering because of the pandemic may apply for up to 5 million forints in tax deferrals.

IMF Forecasts Hungary Economy Contracting 3.1% in 2020

All companies currently classified as “dependable taxpayers” will retain their status, he added.

Hotels and other lodgings will be exempt from the tourism tax until the end of 2020, Varga said. At the same time, the central government will continue to pay support to local councils as normal, he added.

A reduction in the rate of the Small Business Tax (KIVA) from 12 percent to 11 percent from next year will save more than 50,000 businesses a combined 10 billion forints, he said.

The deadline for some 600,000 companies to file reports and pay corporate tax and local business tax will be pushed back to Sept. 30, he noted. The new deadline will not apply to listed companies, banks, insurers or investment companies, he added.

Featured photo by Márton Mónus/MTI