For the first time, the population’s payment of taxes and fees probably exceeded 3 trillion HUF, while in 2016 it did not even reach 2 trillion Swiss francs – this is clear from the balance of the central budget. According to preliminary data for 2021
The state treasury received a much larger amount of personal income tax and auto tax, as well as tax payments, than the planned 3,007 billion and 106.8 percent, or 3,211 billion forints.
With regard to retail payments, which increased by 200-300 billion forints year on year, Daniel Molnar, a macroeconomic analyst at the end of the century, emphasized that the more people are taxed, the less tax paid per person. .
“In Hungary, the government implemented a fiscal devaluation after 2010. As part of this, it lowered taxes on employment, boosted employment, and put more emphasis on taxes related to consumption. At the request of VG, Dániel Molnár stated that this move has an overall neutral effect. On the balance of the budget, but it supports economic growth.The expert noted that this is also necessary because the level of tax revenue is primarily affected by economic performance, that is, the faster the economy grows, the more money the budget can manage.
Retail payments are also affected by the black economy, which the government has introduced in recent years to reduce a number of measures, such as EKÁER (Electronic Road Traffic Control System) and online billing system, which increases VAT revenue.
Hungary has improved its value-added tax rate from 22 percent in 2010 to 6.1 percent by 2020
– These statistics show the percentage of VAT that can be charged to the budget. With the narrowing of the VAT gap, it became possible to reduce the tax rate and expand the reduced VAT rate for several types of taxes, which, according to the analyst at the turn of the century, have implications for the size of the tax. black economy.
In the case of personal income tax, the increase in revenue is driven by the rise in wages on the one hand and expansion of employment on the other. This will be reduced by extending tax incentives and introducing tax breaks for children and under 25 years old.
At the same time, due to the flat personal income tax, employees pay more to the budget in total, and their net income increases in parallel.
It is also important that the role of bleaching appears in the case of PIT proceeds. Due to tax inspections and the constant increase in the minimum wage, the amount of wages paid into the pocket is gradually decreasing, which increases state revenue. But labor shortages also have an impact on undeclared work, as competition for workers forces legal employment,” emphasized Daniel Molnar.
According to the preliminary state treasury balance, in the past year, not only did the population have higher than planned income, but also more money came from business organizations and consumption taxes. The value-added tax, for example, is approximately 5,400 billion HUF, which is a huge record. The statutory revenue of the central budget, as amended, was 15,430 billion Swiss francs, while the latest figures show that this amount may have exceeded 17,350 billion Swiss francs, or 112 percent of the appropriation.
