Tax reductions are to leave HUF 260bn at families, households and enterprises, Minister for National Economy Mihály Varga said, after the National Assembly had adopted the tax package accompanying the 2018 Budget.

Connecting companies’ billing systems to the tax authority -- starting in July next year -- is expected to generate several tens of billions of forints in extra revenues for the state and several times that figure for lawfully operating enterprises, he added.

Tax reductions will continue in 2018, he stated. VAT on Internet services has been cut by 13 percentage points, to 5 percent, which is seen to leave HUF 22bn at families. The VAT on fish and swine offal has also been lowered to 5 percent. Guests at restaurants will also pay, as a whole, 9 percent less tax. 
330 thousand families with two children will also be better off next year, as the family tax allowance is raised from the current HUF 15 000 to HUF 17 500 per child, the Minister pointed out.

The fact that payroll taxes, the so-called social and healthcare contributions, will be reduced from the current 22 percent to 20 percent is expected to boost competitiveness. The savings realized by enterprises through this measure are estimated at HUF 164bn next year. The tax rate on small enterprise income is also set to be cut by 1 percentage point, to 13 percent. Besides the tax cuts worth HUF 3bn, home owners who rent out flats will also see less red tape and lower tax liabilities. The administrative burden for economic actors will also be eased and their competitiveness boosted next year: new enterprises will only have to get themselves registered at the National Tax and Customs Administration (NAV), registration data will be automatically forwarded to local governments by the tax authority.
The limit for a 50 percent reduction on the excise tax for small breweries is set to increase twenty-five fold, to 200 thousand hectolitres of beer produced per year.

University students working as so-called small entrepreneurs will also benefit from lower taxes: full-time university students are to pay HUF 25 000 per month instead of the current HUF 50 000 per month as of next year.

(Ministry for National Economy)