Finance Minister Mihaly Varga – Photo: MTI

Finance minister: Economic cabinet decides on HUF 750 billion of tax cuts

The economic cabinet has decided on 750 billion forints (2.044 billion euros) of tax cuts, with payroll taxes to be reduced further, Finance Minister Mihaly Varga said on Facebook on Saturday.

Social security contributions will be reduced by 2.5 percentage points from January 1, the vocational training contribution will be abolished, the small business tax rate will be cut to 10 percent and the local business tax relief for SMEs will be extended so these companies will again pay a maximum of 1 percent tax next year, Varga said.

The total amount of the tax cuts this year and in 2022 will reach 2,000 billion forints, the finance minister said.

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