Multinational consulting firms are working on their own tax proposals that will be published next month, Népszabadság writes. The proposals include bringing down tax barriers by Ft 1,000 billion in the next few years in order to get the economy on a higher growth track and to create new jobs.
Social contribution payments made by employees would be cut by 10%, but at the same time the current flat rate health care contribution per employee (EHO) would jump to Ft 8,000 from Ft 2,000 at present. Cutting red tape and the whitening the economy were also high priorities.
Consulting companies propose a two-tier income tax system: a 20% bracket for annual incomes below Ft 15 million and a 30% rate for incomes above that. The tax-free status of the minimum wage would be abolished, as would tax benefits within the personal income tax scheme. Flat taxes, the simplified social contribution scheme EKHO and the simplified business tax Eva would also be scrapped. The firms also propose that the government reform the welfare system.
To cover lost revenues due to tax cuts, the consultant groups would raise VAT to 23% from 20% and introduce a property tax. The planned tax measures would help both small and larger companies.
Scrapping EVA is a bit of a blow for those that spent years waiting to eventually get the status.
Well, I find it hard to believe that they would actually do away with Eva, for a couple of reasons… one, it’s apparently led to some extra revenue that otherwise would be lost, and two, because the whole system was put in place to benefit the “consultant class” of people that really call the shots in HU.