Next year will be dedicated to tax simplification and cuts, with the personal income tax dropping from the current 16 to 15 percent, the National Economy Ministry said on Wednesday.
The cut will result in an extra HUF 30,000 (EUR 96) left in people’s pockets in 2016. Family tax allowances for families with at least two children will be increased by 25 percent, leaving an additional 60,000 forints extra with such families. The VAT on pork carcasses will be reduced from 27 percent to 5 percent to fight black market trading and help low-income people. Green electric cars will be exempted from registration tax and fees, vehicle tax and company car tax. Further, the tax office will help nearly 1.5 million people prepare their tax returns.
