Hungary to further cut payroll taxes as economy improves Hungary to further cut payroll taxes as economy improves

Hungary to further cut payroll taxes as economy improves
07 Jun 2018

Hungaryʼs new government will cut payroll taxes further and increase tax preferences for families with two children as the economy continues to improve, Prime Minister Viktor Orbán has said.

The payroll tax will fall by a further 2% in 2019, while the tax preference for families with two children will be raised to HUF40,000 (US$146.20) a month, according to the Budapest Business Journal.

Orbánʼs previous government reduced the payroll tax by 5% from 27% in 2017, and by a further 2.5% from 2018. The government linked further possible payroll tax cuts to real wage growth. Orbán has also asked his government to ensure the 2019 budget had sufficient funds to support economic and corporate development, innovation, adaptation to technological change, and research and development. 

Unemployment, the government deficit and state debt are all on the decline, while wages, employment and the Hungarian economy’s performance are improving, providing a good foundation for the 2019 budget, he added.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

Hungaryʼs new government will cut payroll taxes further and increase tax preferences for families with two children as the economy continues to improve, Prime Minister Viktor Orbán has said.

The payroll tax will fall by a further 2% in 2019, while the tax preference for families with two children will be raised to HUF40,000 (US$146.20) a month, according to the Budapest Business Journal.

Orbánʼs previous government reduced the payroll tax by 5% from 27% in 2017, and by a further 2.5% from 2018. The government linked further possible payroll tax cuts to real wage growth. Orbán has also asked his government to ensure the 2019 budget had sufficient funds to support economic and corporate development, innovation, adaptation to technological change, and research and development. 

Unemployment, the government deficit and state debt are all on the decline, while wages, employment and the Hungarian economy’s performance are improving, providing a good foundation for the 2019 budget, he added.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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