Finance Minister Peter Oszko said at a press conference on Wednesday that the government might consider taxing assets other than vehicles in addition to its proposed introduction of a real-estate tax.
Mr Oszko noted that whether it is worth taxing such assets remains an open question.
Mr Oszko said that the objective of the Bajnai government’s proposed real-estate is to increase the fairness of Hungary’s tax system, noting that taxes are already paid on 45pc of residences in the country. The finance minister added that the average tax on homes would be just a fraction of the sum of next year’s decrease in income tax on the average wage. Mr Oszko estimated the latter sum to be a month to six weeks’ wages per year.
The upper limit of the lower income bracket for personal income taxes will be raised to HUF 5m (EUR 17,870) from the current HUF 1.9m, Mr Oszko said.
This year the lowest 18pc personal income-tax rate will also be raised to HUF 1.9m from HUF 1.7m, saving HUF 36,000 for 1.37m people and somewhat less for another 250,000.
Hungary’s parliament would have to approve the new tax laws by the end of June in order to facilitate the preparations of economic players in Hungary for 2010, Mr Oszko said. Although Mr Oszko mentioned raising the lower income limit for personal income taxes to HUF 5m, the finance minister did mention the previously discussed changes of the lowest rates to 17pc from 18pc and the highest rates to 32pc from 36pc.
“the government might consider taxing assets other than vehicles”
Here we go again !!!!
Just give the economy and the people a f$cking break for once !!
Well, JD, I sympathise with your attitude. But, in principal, a property tax is a normal part of any tax system and it could be particularly useful in Hungary to recoup tax from the many wealthy individuals who screw the system. Of course, that means slapping a great big tax on property worth 100m+, maybe a smaller tax on anything over 40 or 50m, and no tax at all for other properties. Then, when and if the property market start booming (sometime in the year 201x) you can extend the tax to all properties. This will also be useful tool for cooling the market.
I’m not really in favour of a “wealth tax” or “luxury tax” (e.g. increased VAT on certain products such as expensive cars) but it could be a good move if only for the message it gives out.
Hi John Hunyadi
At this point, I would think that a wealth tax might be something to consider when the rest of the house is in order. The government should focus on a sensible way to reduce the black market from over 30% GDP down to something a lot less.
Doing this by slashing income tax and enforcing collection might just stimulate the economy at the same time as reducing the black market. Imagine that !
Yes, I agree. Flat taxes with stronger enforcement is the way to go. A wealth tax would not bring in additional revenues – it might even reduce them if it was set at too high a rate – but, as I alluded to before, it would give out the message that the wealthy are not being rewarded at the expense of the poor.
The introduction of a flat tax worked in Slovakia, though the difference there is that government spending as a proportion of GDP is much lower (30% in Slovakia compared to 40% in Hungary). So it would be more difficult to implement in Hungary.
Hey, John Hunyadi, maybe you should be on a SLOVAKIAN blog instead? You keep running off about FLAT TAXES in Hungary, Buddy, but other than yourself, NOBODY is proposing flat taxes for Hungary, see?
That is because Hungary clearly believes in nothing but PROGRESSIVE taxations schemes, dig?
Also, you are once again playing Nostradamus here for us, predicting that “the property market start booming sometime in the year 201x.” Just how the heck would you know that, Predictive Friend?
And more importantly, WHY would the Hungarian property martket ever bloom again, when already one can get a comparable quality luxury flat for LESS money in just about every other civilized city on Planet Earth than one can get it in Budapest today?
Since you talk-a-lot, it would be very nice for your readers of you could make some sense at least once in a blue moon, you know.
Hey Fantron, did you get training from the socialist party to be such a jerk or does it come naturally? I suspect the latter.
I used to live in Budapest, but then the communists changed the rate of tax on me from 15 to 25% and then made the ceiling too low for me to be eligible for the “entrepreneur” tax.
Why the hell should I pay over 50% tax to the Hungarian government when I can pay only 20% to the Slovak? In Hungary I’m not able to claim any benefits for 12 years, and the pension will be non-existant. I pay my own health insurance, buy motorway vignettes and contribute several tens of thousands of euros into the Hungarian economy (far more into the Slovak one).
If no-one is talking about flat rate taxes in Hungary, then maybe that goes a long way to explaining why the country is fucked. You magyar pakis delight in being the “victim” and blaming everyone except yourselves.
The Hungarian government should raise taxes to 99%. Then we could attain the ideal paradise state where all needs are met, no worries, free, healthcare, free welfare, free education, free auto/bus/taxi/train, freedom from work and responsibility. This has led to the downfall and collapse of every society since ancient Greece. Do we study history? Of course not. Only free market capitalism can produce prosperity- not government officials. Close the hungarian government immediately. (Do we really need one for 9 million sheeple?) We need a Mayor of Hungary and the Euro. Zero income tax and 5% business tax.
The government continues to mis-manage the economy
and then its the same old chestnut: “what haven’t we increased the tax on, yet”?!
How much more can we take, JD !!!???
Everyone, there is a real fool posting here who variously calls himelf “John Hunyadi” and “Paul Collins,” I know this crackpot, he purposefully is infiltrating this web site so that the Hungarian government now led by Gordon Bajnai can attempt shut it down.
Eveyone, be careful!!! See this guys postings, and see if you agree.
Apparently there are some Slovakian provocateurs on these blogs, they hate the Hungarians with a raging passion. As far as the Hungarians are concerned they blame everything on all the foreigners, anyhow, whether they are here to help them or here to rape them (which is usually the case, probably).
Guys and girls, I don’t get it, have I missed something?
You seem to be giving John Hunyadi a particularly hard time on some of these postings. Whereas I might not agree with all that he/she says, more often than not, the comments are relatively passive and unoffensive.
Unlike some of the racism that is rife in some of the threads.
Enlighten me. What did I miss?