| Hungarian Government submits tax reform proposals to parliament |
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| Wednesday,September 28,2005 Posted: 22:50 BJT(50 GMT) 匈牙利经商处 |
The Hungarian government has put its 2006 tax reform proposals before parliament, finance minister Janos Veres declared in Budapest on September 26.
The plans presented as part of prime minister Ferenc Gyurcsany's "100 steps" reform program, provide for HUF 1 trln (USD 5 bln) in tax cuts over the next five years. As the government points out, this amounts to over 5% of Hungary's annual GDP. From 2006, the top rate of VAT will be decreased from 25% to 20%. The top rate of income tax will reduce from 38% to 36%, while the bracket separating this and the unchanged 20% rate for lower incomes will be increased from HUF 1.5 mln to HUF 1.55 mln. A 10% tax on stock market and exchange rate gains will also be introduced as of 2007. Elsewhere, companies can write off 100% of the controversial local business tax against the corporate tax base, while corporate tax will fall to 10% for the first HUF 5 mln of profits for companies paying at least twice the minimum wage.
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