BUDAPEST: Mihály Varga, the Hungary’s Minister for National Economy stated that he has sent his vision for tax reform after a number of positive signs comes from Hungary’s economy. These have included substantial reduction in budget deficit and higher tax revenues from strengthening recovery. S&P is to raise the Hungary’s rating from BB to BB+.
Speaking at the Hungarian Business Leaders Forum, Varga highlighted the positive developments for Hungary and disclosed that in the upcoming 2016 Budget and will prioritize tax reform. The Minister stated that he will be looking to simplify the country’s tax regime to make it more taxpayer-friendly. In particular, the Government is seeking to slash the value-added tax rate, which, at 27 percent, is the highest in the European Union, and lower personal income taxes. However, that significant reform may have to wait until 2018, he admitted.
