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14th March, 2019

Government reducing financial transaction tax

The government is placing an Ft 800 ceiling on the financial transaction tax paid by banks on transfers by private persons of Ft 20,000 or more, according to a bill filed by Finance Minister Mihaly Varga in Parliament on Tuesday.

The tax exemption for natural persons on all transactions below Ft 20,000 is maintained.

The Ft 800 replaces the present percentage system and is independent of the number of transactions carried out.

According to Bank Association secretary Levente Kovacs, the bank sector pays an annual Ft 12-13 billion in financial transaction tax on transactions by private persons.

The Finance Ministry estimates that the change will save banks Ft 10-13 billion.

However, Portfolio estimates the savings to be realised by banks at Ft 4.3-5.3 billion. (portfolio.hu; index.hu; 444.hu)
14th March, 2019

Varga to abolish tax on state bonds

The government will abolish the tax on interest earned by individual investors on state bonds from July 1, according to a bill filed by Finance Minister Mihaly Varga in Parliament.

The tax exemption is valid only on state bonds issued after July 1, the bill underlines.

The bill also proposes to use home savings funds and their sales agent networks as new sales channels for state bonds.

In addition, the government is planning to increase the State Treasury’s number of bond-selling outlets.

The MNB has recently suggested that the scope of state bonds sold at post offices be widened to include inflation-indexed state bonds. (portfolio.hu; hvg.hu; magyarhirlap.hu; index.hu; origo.hu)
14th March, 2019

Industrial output up 4.4%

Industrial output was up 4.4% year-on-year in January, the Central Statistics Office announced on Wednesday as it released final figures confirming the preliminary data.

The annual increase was 5%, according to workday-adjusted data.

Industrial production rose by 0.6% from the previous month, according to both seasonally and workday adjusted figures.

Industrial exports were 6.7% higher than one year earlier, while domestic industrial sales increased by 8.7%.

Manufacturing output, which accounts for 94% of total output, expanded by 3.7%.

The overall figure was boosted by increases of 16.4% in mining and 9.5% in energy output.

Vehicle production, with a 24% weight in manufacturing, was up 4.8%. IT and electronics production expanded by 3.2%, while the food and tobacco industry output rose by 4.7%. (ksh.hu; magyarhirlap.hu; hvg.hu)
14th March, 2019

NAV presents income tax drafts

The tax authority NAV is presenting its draft personal income tax declarations on its website from today, Finance Minister Mihaly Varga announced yesterday.

The NAV has prepared 5.6 million draft income tax declarations this year, up from 5.1 million a year ago.

An estimated 3.8 million persons have obtained e-passes from the government website, without which the draft cannot be accessed.

Others may ask the NAV to send their draft declaration by post. Such requests must be made by midnight of March 18.

By developing e-government, NAV may become the first authority in Hungary that no longer uses paper by 2020, Varga said. (magyarhirlap.hu; napi.hu; magyarhirlap.hu; hvg.hu; magyarnemzet.hu; KR)

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