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State Audit Head Sees more Room for Tax Cuts to Boost Competitiveness

MTI-Hungary Today 2019.05.22.

Increased budget revenue from government measures to enhance tax compliance and crack down on tax evasion should be used for further tax reductions, but those cuts should strengthen Hungary’s competitiveness, the head of the State Audit Office (ASZ) said in an interview published in Wednesday’s issue of daily Magyar Nemzet.

Laszlo Domokos told the paper that measures to broaden tax compliance, such as the roll-out of mandatory electronic invoicing, were an “undoubtedly important element” of Hungary’s economic growth.

He said the government can use the additional budget revenue these policies generate for further tax reductions.

Finance Minister: Govt Committed to Tax Cuts

“I think there is an opportunity for further tax rate reductions. Before taking such a step, one must consider which taxes should be cut and to what degree with an eye to supporting economic growth. Cutting those taxes which, when reduced, strengthen the country’s competitiveness is most appropriate. That’s why I see a chance, first of all, to reduce rates on taxes on labour. I would exercise caution concerning a reduction of taxes on consumption,” Domokos said.

He said digitalisation and improving competitiveness are key to Hungary’s sustainable economic growth.

In the featured photo: State Audit head László Domokos