Hungary plans single-digit flat tax rate

One of the most controversial economic issues in Hungary is back in the public attention: the uniform income tax rate, or, by its other name, the flat tax. According to the plans of the national conservative government of Prime Minister Viktor Orbán, the tax rate would soon be reduced from its current 16 per cent to below 10 per cent, which would be an absolute novelty in Europe.

Orbán first communicated the viewpoint of his government during his visit to Japan in November when he said it is possible that the flat rate might become a one-digit number. Mihály Varga, Minister of National Economy, confirmed his words a little later. Now Zoltán Pankucsi, the state representative responsible for tax issues in the Ministry of Economy, has confirmed there will be further reduction, but at the earliest in three years.

For the full story, please visit The Budapest Times.

(Photo: Nato)