Single-digit personal income tax rate untimely to consider - FinMin

Portfolio
About 650 billion forints should be surrendered from the budget in order to lower the current 15% personal income tax rate to a single-digit figure, Finance Minister Mihály Varga said late on Tuesday. He added, however, that he does not feel this is timely now.
Varga admitted at an event organised at a discussion held at the Faculty of Law of ELTE university that he had not been an avid fan of the flat-rate PIT earlier, but since then he has been convinced it was actually a good idea. The minister believes it’s a matter of choosing your values and he finds it important that “when you have to pay for something, we should respect that". He thinks that abolishing the 0% rate raises interest for public affairs and it does not spur anyone to work if they have to pay proportionately more just because they earn more.

As regards funds taken abroad, Varga said he is not a Communist so he does not envy anyone’s income. He is of the view that basic income is also a Communist idea that is not an incentive to work.

Varga said it is difficult to predict if there would be a crisis. Some economists like to raise red flags about this and if it actually hits they will be celebrating themselves. The minister suggests everyone to try and live a life where they believe a crisis is a possiblity.
 

More in Economy

March 28, 2024 13:31

Wage agreement reached in Hungarian Mercedes plant

Unilaterally, after 15 failed attempts

mnb inflacios jelentes
March 28, 2024 13:15

A weak forint is bad for inflation, according to Hungary's central bank

Inflation Report published

influenza beteg nő
March 28, 2024 11:00

More Hungarians seek medical help with acute respiratory infection

Influenza-like symptoms drop further, though

csecsemő baba születés
March 28, 2024 09:55

Hungarians' willingness to have children diminishes further

Number of live births at record low

hotelszoba - örömködő idősek -  Getty
March 28, 2024 09:40

Tourism getting perkier in Hungary

February data show pleasant growth

dolgozó worker gyár gyári munkás ipar
March 28, 2024 09:20

Gross average wage already over HUF 600,000 in Hungary

Wage growth is extremely fast