Hungary Tax Harmonization With EU Would Slow GDP Growth
Hungary won’t join the European Union’s efforts to harmonize its corporate taxes as that would slow Hungary’s economic growth by up to 0.9%, Prime Minister Viktor Orban said Tuesday.
“Economy ministry calculations show that we would lose gross domestic product growth of 0.5% to 0.9%,” Orban said at a press conference.
Hungary won’t join the EU’s Stability and Growth Pact so that it can keep its corporate tax rate low and thus improve its competitiveness, the Economy Ministry said Monday.
“Economic growth can be boosted in the fastest way by having a competitive tax system and reducing taxes,” Orban said.
Hungary last year lowered its corporate tax rate to 10% for small companies with a maximum annual revenue of 500 million forints ($2.6 million). Its corporate tax rate is 19% for firms with higher annual revenue, but the actual tax rate companies pay is usually lower because of several tax incentives.
The government wanted to lower the corporate tax rate to large companies this year to 10% but postponed that plan in March to meet budget-deficit targets.
via Hungary Tax Harmonization With EU Would Slow GDP Growth – PM Orban.
In Boedapest 