December 29th, 2009

FinMin calls for reducing taxes on labor, scrapping local business tax

Hungary’s Finance Minister Peter Oszko told MTI that the tax burden on labour should be reduced by further 5 percent and local business tax should be scrapped as soon as Hungary’s economy enables this.

These would be the most urgent tasks to boost the economy, Oszko said.

The current government has prepared a practically flat-rate tax system to come into effect from 2011, Oszko said. “This can be technically further adjusted and refined,” he added.

Frugal fiscal management must be maintained in the budget, Oszko said. Simultaneously, the efficiency of the state administration system must be significantly improved and this is not exclusively the finance minister’s task, he added.

Hungary needs a far more efficient educational system because “economic growth in the long term will result from knowledge and not only from more money,” Oszko said. The same applies to the health system and the system of local governments where efficiency needs to be improved instead of increasing financing, he added.

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  1. MARY HOWE says:

    This article was well done. This article was very useful.I am appreciative for this information.

  2. salk1 says:

    Good luck. The only impetus will be the soverign default of
    Magyarorszag. this will be the only cleansing of this communist
    system. Greece will go bust, then Ireland, portugal, Spain. Soon
    magyarorszag. the deficit and debt is so huge that it cant be
    financed.