July 19th, 2012

Researcher GKI: Government’s “job protection plan” to weaken budget without improving employment

The government’s job protection plan will considerably deteriorate the position of the budget without substantially expanding employment, economic research company GKI said in an analysis sent to MTI on Wednesday.

GKI said the job protection plan will not have a major impact as companies’ savings will be offset by their increased expenditures of a telephone tax and a financial transactions tax. The compensation they receive for the elimination of the income tax refund and the minimum wage hike will also be lowered next year, increasing costs by a combined 150-200 billion forints for companies, GKI said.

Prime Minister Orban on Tuesday announced new tax and job-boosting plans, saying labour-related tax relief worth 300 billion forints (EUR 1bn) next year could be increased to up to 500 billion forints thereafter.


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