Tax cuts are the engine of economic growth and the burden for the taxpayer will be further reduced this year, the Hungarian Finance Ministry s State Secretary for Tax Affairs, Norbert Izer, told a press conference in Budapest on Thursday.

Despite tax cuts, tax revenues of the treasury from the top five taxes increased by 1,300 billion Hungarian forints (appr. 4 billion euros) by the end of November last year. A strong economy, expanding employment and rising wages yield more revenue for the budget, allowing for further tax cuts, the state secretary said.

Izer stressed that tax cuts are sustainable and effective and that the budget is stable and predictable.

Tax on companies is the lowest in the European Union at 9 per cent, personal income tax at 15 per cent is the third lowest, and social contribution tax is down from 27 per cent in 2016 to 17.5 percent from July 2019, State Secretary Izer highlighted, adding that social contribution tax is planned to be reduced by another 2 percentage points this year, from July or October.