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Socialists call for educational institutions to benefit from TAO tax relief

The opposition Socialists call for extending companies' entitlement for corporate tax (TAO) relief to grants offered to educational institutions, the head of parliament's budget committee said on Friday.

Zoltan Vajda told an online press conference that under an amendment proposal his party submitted to next year’s tax laws, corporate tax allowance would become available on support granted to educational and health-care institutions, in addition to the sports sector.

Under the proposal, the institutions could use the support for the development and operation of infrastructure, the purchase of equipment and also for paying bonuses to their employees, he added.

The Socialists also propose reducing the VAT on electricity and natural gas services from 27 percent to 5 percent, which could result in savings of up to 100,000 forints (EUR 250) to families during the heating season, Vajda said.

He said the Socialists consider it necessary to give exemption from personal income tax to those on the minimum wage and to reduce personal income tax on low incomes.

The lawmaker criticised the government’s tax package, stating that nothing in it helps families and businesses in a difficult situation.

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