PM: Tax Increases ‘Toxic’ for Hungary


Commenting on a European Union initiative to introduce a minimum corporate tax rate, Orbán said “it is in the national interest of Hungary not to accept externally imposed tax regulations” because “tax increases are toxic for its economic system.” He added that the “starting point” for the country’s economic success was a tax system that makes Hungary competitive. “Now is not the time to set aside reserves, now is the time for recovery,” he said.

Orbán said the time is right to continue the gradual reintroduction of an annual pensioners’ bonus, to roll out a personal income tax exemption for Hungarians under 25, to give families raising children a growth-linked tax rebate, and to agree with businesses on conditions for raising the monthly minimum wage to 200,000 forints, once economic growth reaches 5.5%.

He pointed out that the 2022 budget targets a modest decline in year-end state debt, relative to GDP, but said the timing is not right to “radically” reduce that indicator.


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