Finance Minister Mihaly Varga – Photo: MTI

Finance minister: Government to cut taxes by HUF 1,500 billion next year

The government will cut taxes by 1,500 billion forints (EUR in 2022, a video posted on Wednesday on Finance Minister Mihaly Varga's Facebook page showed.

The personal income tax rebate for families raising children will amount to a 600 billion forint tax cut, the video said.

The exemption from personal income tax of Hungarians under 25 will leave 140 billion forints with young people.

The government will cut payroll taxes to 13 percent from 17 percent, abolish the 1.5 percent vocational training contribution, reduce the social contribution tax by 2.5 percentage points, leaving an additional 600 billion forints with companies.

The decision to reduce the small business tax (KIVA) to 10 percent from 11 percent will cut taxes for the businesses concerned by 10 billion forints , it said in the video.

Extending the local business tax (HIPA) relief to SMEs into 2022 saves them 150 billion forints.

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