Illustration - Photo: pxfuel

Official: Government ready to cut social contribution tax by 4 percentage points

In an effort to ease the burden on businesses in light of its policy of raising the minimum wage to a monthly 200,000 forints (EUR 555), the government is proposing a 4 percentage point reduction in the social contribution tax, an official of the innovation and technology ministry said after wage talks on Wednesday.

State secretary for employment policy Sandor Bodo told a press conference that the proposed reduction from 15.5 percent to 11.5 percent would leave a total of 500 billion forints with businesses.

The Hungarian government is dedicated to its policy of cutting taxes, he added.

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