Wednesday June 17, 2009
Ministers in Hungary have agreed a deal to cut VAT on district heating by 20 per cent, it has been claimed.
According to Portfolio.hu, local newswire MTI has claimed that prime minister Gordon Bajnai and other politicians are to reduce the rate from 25 per cent to five per cent at the start of next year.
In addition, the service will also be given a preferential rate of 18 per cent from the start of August, subject to European Commission rulings.
Other items which may also be affected by the rate cut include books, daily newspapers and medicine.
According to WorldRadio.ch, the Swiss parliament is currently discussing the possibility of upping its own rate of VAT.
It is believed the country’s senate has rushed through legislation on the issue which could see it introduced by 2011.
Thursday May 21, 2009
The Hungarian government’s planned combination of excise tax hikes and VAT increases will see significant price rises on products such as fuel, cigarettes and alcoholic beverages, according to reports.
Under the plans excise tax content on diesel fuel would rise by 7.6 per cent and by ten per cent for petrol from January 1st 2010.
The minimum tax on cigarettes will rise by 8.3 per cent and the tax on alcoholic drinks will leap by ten per cent.
As the government has already announced plans to increase the regular VAT rate to 25 per cent from 20 per cent, this two-step hike could see the price of gas boosted by HUF 25 (0.8p) a litre, reports the Portfolio news provider.
Details of excise tax increases were announced as part of the government’s tax change regime for 2010, which is expected to be finalised today.
The VAT hike was announced earlier this month and will take place from the start of July.
However, the rate will remain the same on certain products, such as heating and basic food bills, which will retain VAT of 18 per cent.
Tuesday May 12, 2009
Politicians in Hungary have agreed a major new tax law which will see the rate of VAT in the country increased by five per cent.
The country’s parliament has revealed that the decision to up the rate from 20 to 25 per cent from the start of July was approved in a major vote involving the country’s ministers.
However, the rate of VAT on certain categories of products, including basic food and heating bills, is set to remain at just 18 per cent.
It is hoped the decision will boost the Hungarian economy, which is expected to shrink by up to six per cent over the course of this year.
As well as increasing VAT, the country’s government is also cutting state pension instalments.
The decision of the parliament has come after the European Union last week confirmed that lower VAT rates can now be offered on a number of labour-intensive services.
Friday April 17, 2009
Hungary could be set for a VAT hike in the coming months, it has been reported.
The incoming government for the country has outline plans for a four-point rise, which would see VAT increase to 24 per cent from July, according to Reuters.
Gordon Bajnai, the new prime minister who was sworn in earlier this week to replace Ferenc Gyurcsany, is expected to reveal the new tax scheme in the coming weeks.
Hungary is currently embroiled in its worst financial crisis for 20 years and its future prospects are believed to be dependant on a $25 billion (£16.8 billion) loan, which will be led by the International Monetary Fund.
According to the news agency, other plans in the government’s tax scheme include a removal of exemptions of personal income tax and scrapping the proposed implementation of an additional four per cent charge on companies.
Thousands of protestors recently took to the streets of the Hungarian capital of Budapest to voice their distain over the appointment of Mr Bainai.
It is believed that nine arrests were made as police clashed with the protestors.
