Reducing the personal income tax rate on the minimum wage to 9 percent will cost the budget 250 billion forints (EUR 670m) in 2027, as revenue of roughly the same amount is expected from the wealth tax on billionaires, Prime Minister Péter Magyar said in an interview with news site Telex on Tuesday.
Responding to a question, Magyar said there were plans to reduce personal income tax for higher earners as well, but he did not currently see this as a realistic prospect. He added that in Hungary, a great many people are exempt from taxation, with many receiving tax relief or tax-exemption, some for life.
“Someone has to pay taxes, there isn’t really a country, at least in Europe, where there is no personal income tax revenue,” he said. Magyar said the proposal to double family allowances needed to be clarified. There was currently a debate as to whether the increase should also apply to the increased family allowance, he said, adding that he believed it should.
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Magyar: Personal income tax cut to cost HUF 250 bn
Reducing the personal income tax rate on the minimum wage to 9 percent will cost the budget 250 billion forints (EUR 670m) in 2027, as revenue of roughly the same amount is expected from the wealth tax on billionaires, Magyar.
Responding to a question, Magyar said there were plans to reduce personal income tax for higher earners as well, but he did not currently see this as a realistic prospect. He added that in Hungary, a great many people are exempt from taxation, with many receiving tax relief or tax-exemption, some for life.
“Someone has to pay taxes, there isn’t really a country, at least in Europe, where there is no personal income tax revenue,” he said. Magyar said the proposal to double family allowances needed to be clarified. There was currently a debate as to whether the increase should also apply to the increased family allowance, he said, adding that he believed it should.
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