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Hungary’s 2016 Budget passed containing number of new tax reforms

Hungary’s 2016 Budget passed containing number of new tax reforms

BUDAPEST: Hungary’s National Assembly has passed the 2016 Budget, containing a number of tax reforms.The tax measures are aimed at helping the poorest taxpayers and have been passed unchanged from the draft issued in May. The most significant of these is the reduction in the rate of personal income tax, from 16 percent to 15 percent, which the Government says will benefit taxpayers by HUF120bn (USD431m).

Families will also benefit from an increase in the tax-free allowances. For a family with two children, these will rise from HUF10,000 per month to HUF12,500 per month and the Government aims to lift these allowances further in the years to 2020. In addition, the rate of VAT on pork has been cut from 27 percent to five percent.