In addition to the subsidies, the loan moratorium, and the restoration of the 13th monthly pension, the government decided on a HUF tax reduction of around one thousand billion in response to the coronavirus crisis, András Tállai informed MTI.

The parliamentary state secretary of the Ministry of Finance stated that the tax cuts introduced since March 2020 can play a significant role in restarting the economy.

The relief measures brought in during the first wave of the epidemic helped more than 360,000 people to keep their jobs and businesses, and HUF 50 billion were left for those affected. Among the first measures, the tax office canceled the four-month public charge from the tax invoices of more than 151,000 tax-paying companies subject to itemized tax. As of March 2020, the sectors most exposed to the epidemic also received a significant tax discount on the wages of employees, said András Tállai.

In order to protect human lives and preserve jobs, in the autumn phase of the pandemic, the government decided on new tax reliefs from November 2020. For seven months, the employer's tax exemption went to the players in the sectors that are in a difficult situation due to the coronavirus crisis, and their range was also expanded this spring. In the end, it covered about 200,000 employees in fifty-six sectors. This year, 155,000 tax payers were once again exempted from paying taxes for March and April.

He recalled that the tourism sector most exposed to the epidemic was also helped by numerous tax measures. The public burden of the Széchenyi Pihenő Kártya (Szép-kártya) was reduced by less than half (to 15 percent), while the amount that can be transferred to the card doubled, noted the state secretary.

The fact that from April 25 until the end of the year, the affected one million employees are free to move between the individual sub-accounts of the Szép-kártya is a great help to families, the population, businesses and tourism players alike, he underlined.

Since November 14th, those working in the hospitality industry have been helped by the fact that the lowest general sales tax of 5 percent must still be charged for food and beverage sales for takeaway or home delivery, he added.

This year, the maximum rate of business tax for small and medium-sized enterprises (SMEs) was reduced by half, to one percent, said András Tállai, noting that this affects approximately 800,000 enterprises. He touched on the acceleration of VAT refunds, which is a serious liquidity aid for SMEs. The 20-day VAT remittance time can provide domestic businesses with a substantial competitive advantage, as it is one of the fastest in the European Union.

In view of the coronavirus epidemic, the social contribution tax rate was reduced to 15.5 percent as of July 1, 2020, which leaves employers with HUF 160 billion last year and HUF 300 billion this year. The reduction of the tax on work will continue next year, as from July 1, 2022, the social contribution tax will be reduced by another half a percentage point, and the vocational training contribution will also cease from that date, so the two percentage point reduction in the public burden also comes with a significant administrative simplification - concluded the state secretary .

Source: MTI

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