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Finance Minister: Economic Cabinet Decides on HUF 750 BN of Tax Cuts

MTI-Hungary Today 2021.11.13.

The economic cabinet has decided on 750 billion forints (2.044 billion euros) of tax cuts, with payroll taxes to be reduced further, Finance Minister Mihály Varga said on Facebook on Saturday.

Social security contributions will be reduced by 2.5 percentage points from January 1, the vocational training contribution will be abolished, the small business tax rate will be cut to 10 percent and the local business tax relief for SMEs will be extended so these companies will again pay a maximum of 1 percent tax next year, Varga said.

The total amount of the tax cuts this year and in 2022 will reach 2,000 billion forints, the finance minister said.

Finance Ministry Lowers 2021 GDP Forecast to 6.8%
Finance Ministry Lowers 2021 GDP Forecast to 6.8%

Rising energy prices will "significantly restrain" the performance of European economies, parallel with higher inflation, and the economic impact of the fourth wave of the pandemic will also be felt, Minister Varga said.Continue reading

Featured image via Attila Kovács/MTI