The Fidesz government is weighing up whether to introduce a personal income tax set at 16 percent, the prime minister’s spokesman said on Sunday.
Peter Szijjarto told a news conference on the second day of a government session in Lovasbereny, western Hungary, that the idea of introducing a flat tax as part of a family tax system was being explored.
Asked about his comparison of Hungary to Greece, Szijjarto said he did not wish to participate in the “national guessing-game” of trying to determine the extent of the actual budget deficit as against the target contained in the 2010 budget.
“The government will do everything in the interest of keeping to the original target,” he said.
Hungary targets a budget deficit of 3.8 percent of gross domestic product.
He said that the cabinet, when it comes to drafting the economic action plan, will take into consideration the report of State Secretary Mihaly Varga’s fact-finding panel.
On Friday Szijjarto said that Hungary’s chances of escaping a similar fate to Greece were slim, sparking renewed worries about Hungary. The euro hit a four-year low on Friday and the cost of insuring Hungarian government debt sky-rocketed.
Next day Varga said the comparison had been exaggerated “and if a colleague said such things, then it is unfortunate.”