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AUDIT OFFICE HEAD SEES ROOM FOR GRADUAL PIT RATE CUT - PAPER

 

The head of Hungary’s State Audit Office (ÁSZ) sees room for a gradual reduction in the 15% personal income tax (PIT) rate. “In my opinion, the current economic conditions allow for a further reduction of the personal income tax in two or three steps,” László Domokos told the daily Magyar Hírlap. He said the 1.5% vocational training contribution paid by employers could also be cut to 0.75 to 1.0% in light of the lower number of job-seekers, and he made a case for eliminating the 15% tax on interest. He said, however, that cutting the 27% VAT rate “wouldn’t be worth it” as consumers would benefit not at all or only temporarily from such a measure. He added that VAT is the “most equitable” tax form as wealthier households which consume more also pay more VAT.