Finance Minister Mihaly Varga – Photo: MTI

Finance Minister: Decline in Hungary tax-to-GDP ratio largest in EU

The decline in Hungary's tax-to-GDP ratio last year was the largest in the European Union, Finance Minister Mihaly Varga said on Friday, citing data compiled by Eurostat.

The Eurostat data show that the share of taxes and social contributions as a percentage of GDP in Hungary fell to 34.0 percent in 2021 from 36.1 percent in 2020. The average tax-to-GDP ratio for the EU as a whole stood at 41.7 percent in 2021.

“The government continued to cut taxes this year, too, reducing employers’ taxes by 600 billion forints (EUR 1.46bn), preserving the country’s top position among EU countries in 2022 as well,” Varga said on Facebook.

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