The largest tax reduction in Hungarian economic history will be implemented at the beginning of 2022, according to the ministry's announcement on Friday, Minister of Foreign Affairs and Trade Péter Szijjártó announced.
At the opening of the metalworking company MetMax Europe Zrt.'s factory in Dielstava, the head of the ministry reported that, while in 2010 the corporate tax burden of a medium-sized company amounted to 54.5 percent, following the measures that will come into effect soon, they will be below 33 percent.
He emphasized that the employer's tax burden will be reduced by 4 percent, those under the age of 25 will not have to pay personal income tax (PIT), and two million parents raising children will receive a refund of the PIT they paid this year. MetMax Europe Zrt. is a supplier of large international companies, and its products are installed as parts of railway chassis and brake equipment and pumps, among other things. The state supported the HUF 5.1 billion investment with HUF 1.7 billion, which will create fifty new jobs.
In his speech, Péter Szijjártó underlined: the strength of the Hungarian economy is shown by the fact that nowadays rural, medium-sized, domestically owned companies are able to enter the world market even in sectors representing advanced technological standards. In this regard, he pointed out that Hungary is the tenth most open economy in the world: the ratio of exports to gross domestic product (GDP) is 83 percent. Therefore, according to him, companies producing for export are particularly important in the Hungarian economy. The minister then emphasized that vaccinations are the only protection against the coronavirus epidemic, that no closure or restriction is a solution. As he said, Hungary is in a leading position in Europe in terms of the proportion of people receiving the third vaccination, and the first shipment of vaccines for the immunization of minors has recently arrived.
"Even more vaccinated, even more security," he said. He then added that, following the successful vaccination campaign, Hungary was able to reopen its economy a month and a half earlier than other European countries, and thus its performance was able to reach the pre-epidemic level already in the summer. According to him, in relation to the world economy, this will only be realized by the end of next year. "While in 2008-2009 it took five years for the economy to find its way back to its pre-crisis trajectory, now one and a half was enough," underlined Péter Szijjártó.
Finally, in connection with the investment, he highlighted that the performance of the Hungarian metal industry increased by 37 percent in the first ten months of this year, so that its production value approached HUF 3,000 billion.
(MTI)
Photo: MTVA/ Imre Faludi
