The government accepted an action plan for the protection of the economy, consisting of 13 plus 1 measures, Mr Mihály VARGA, Minister of Finance, announced at the ’Government Info’, held on 30 May. The core elements of the plan are the simplification of taxation, the reduction and the concentration of certain individual tax rates, and the suspension of the advertising tax between 1 January 2020 and 31 December 2022.
According to the GDP data of the first quarter, the Hungarian economy is expected to grow by approximately 4 per cent, Mr Mihály VARGA explained; however, a fallback in the growth is foreseeable in the euro area. The government’s action plan aims to protect the pace of the growth of the Hungarian economy, to keep it above the EU’s average by 2 percentage points at the least.
No loss in tax revenues is expected as a result of the action plan in the long term, according to Mr Varga. Moreover, he believes that the overall tax revenue will increase, as the tax reductions boost the economic increase.
The Parliament is going to receive the next year’s budgetary- and tax bills of the government in the upcoming week.
The action plan is available in full at the following link.
Once the government submits the particular bill on the advertising tax amendments to the Parliament, we’ll share the details.