Economy
Hungary Finmin sees USD 40 oil, would cut tax rates 5% in 2005
He said there could be some improvement in Europe's economy, but the biggest risk remained oil prices. As for the ministry's “projection" of USD 40 for a barrel of oil he said that there is no one at the moment who could say for sure what will be the price of oil next year.
Draskovics said he received criticism at several European forums for deliberately surrendering tax revenues by reducing the excise tax of petrol if its price exceeds HUF 250 a litre and the price of diesel goes north of HUF 225.
Draskovics also said he would reduce tax rates and health contributions by 5% and also do away with the local business tax.
This would curtail budget revenues by about HUF 1,300 billion in 2005, he said. At the same time, such a move would give a great boost to businesses and ensure dynamic growth for Hungary's economy.
Draskovics said he received criticism at several European forums for deliberately surrendering tax revenues by reducing the excise tax of petrol if its price exceeds HUF 250 a litre and the price of diesel goes north of HUF 225.
Draskovics also said he would reduce tax rates and health contributions by 5% and also do away with the local business tax.
This would curtail budget revenues by about HUF 1,300 billion in 2005, he said. At the same time, such a move would give a great boost to businesses and ensure dynamic growth for Hungary's economy.
