The board of the Hungarian Association of Industrialists and Employers (MGYOSZ) welcomes certain elements of an economic stimulus package proposed by the prime minister last week, but taxes could be reduced faster if the resulting loss in revenue was matched by budget expenditure cuts, MGYOSZ chairman Peter Futo told the press after meeting with Prime Minister Ferenc Gyurcsany on Tuesday.
MGYOSZ’s board, which discussed the programme earlier on Tuesday, stressed the importance of proposals to set up a safety fund to cover the HUF 300bn in tax cuts in the first year of the programme as well as to simplify the tax system. They voiced their support for plans to develop vocational training and organise a crackdown on the shadow economy, which would generate revenue to cover the tax cuts.
Prime Minister Ferenc Gyurcsany conceded the proposals are a compromise between stimulating economic growth and ensuring social security and the healthy operation of the state while maintaining the budget balance. The proposals would give employees HUF 80,000 per year in payroll tax savings.