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Biggest tax cut in Hungary’s history could come in 2022

The debate on the HUF 750 billion tax cut bill begins in parliament.

As MTI reported, if the HUF 750 billion tax cut bill is passed in parliament, Hungary’s government may implement the biggest tax cut in its history in 2022, Finance Minister Mihály Varga said.

In the video, Varga stressed that together with the decisions already adopted, a HUF 1.5 trillion tax cut could be implemented.

He said that at the beginning of 2022, the government will give back this year’s PIT to almost 2 million parents raising children, worth some HUF 600 billion. The tax exemption for under-25s will leave HUF 140 billion for young people. Plus, the government has pledged to reduce taxes on labor if employers raise the minimum wage to HUF 200,000. Employer taxes will be reduced by 4 percentage points, while small business taxes will be cut by 1 percentage point, and small businesses will continue to pay a maximum of 1 percent business tax, Varga said.

“I am confident that all my fellow MPs will vote in favor of the HUF 750 billion tax cut bill, as the tax cut will enable Hungarian businesses to earn a higher minimum wage,” the minister said.

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