Fight against black economy successful in Hungary:official

Source: Xinhua| 2018-12-05 06:17:01|Editor: yan
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BUDAPEST, Dec. 4 (Xinhua) -- The fight against black economy has brought its fruits this year, the Hungarian government announced here on Tuesday on its official website.

"Tax revenues are growing by constantly reducing taxes. The Hungarian corporate tax is already the lowest in the European Union (EU), and the personal income tax rate is one of the smallest," Andras Tallai, state secretary of the Ministry of Finance explained, quoted by the site of the government.

In the first ten months of the year, 720 billion forints (2.53 billion U.S. dollars) more were received from significant public charges compared to the same period of the last year, according to Tallai.

Tallai pointed: "Two main factors were behind the positive phenomenon: the reduction of the black economy on one hand, and the wage increase and job creation associated with tax cuts on the other."

"In recent years, Hungary has taken enormous steps to crush the black economy, " Tallai underlined, "Our strategy is based on three large electronic systems, the online cash registers, the electronic tax administration system for goods transported by road traffic and finally the online billing system," he added.

These three electronic solutions complement each other, creating a net that the tax evaders cannot bypass, and in the first ten months this year, Value Added Tax (VAT) revenue increased by 440 billion forints (1.54 billion U.S.dollars) compared to the same period of 2017, Tallai stressed.

Tallai also spoke about the impact of reducing the social charges such as contributions to pensions or to social security.

The figures show that the government's plan has proven to be rock solid: ever-decreasing taxes help to increase the number of jobs and raise wages. And as more and more people are working and they are earning more, the income of taxes increase with lower tax rates, he concluded.