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18th June, 2020

Parragh would revise KATA tax

The Chamber of Commerce and Industry is suggesting that the government revise the regulation of the small business flat tax KATA, chamber president Laszlo Parragh told Magyar Nemzet in an interview.

Parragh would like to stop employers using contracted workers who make use of the KATA option as a loophole for avoiding proper employment.

The KATA scheme helps small businesses with a simple tax payment structure, but also creates opportunities for abuse, he argued.

He said his suggested changes aim to prevent concealed employment but do not hurt honest KATA payers.

Parragh proposed that an extra tax of up to 40% be charged on transactions between a KATA company and its business partner exceeding an annual Ft 3 million.

That would eliminate the tax advantage of hidden employment against formal employment, Parragh said.

A second suggestion is to increase the monthly Ft 50,000 flat tax to Ft 65,000 if the total annual revenue of the KATA business exceeds Ft 6 million.

He said any changes could not take effect before January 1, 2021.

The chamber urges the tax authority NAV to increase the number of targeted audits aiming at discovering concealed employment by using its database. (magyarnemzet.hu; portfolio.hu; hvg.hu; index.hu)
18th June, 2020

MNB provides Ft 70bn to banks again

Similarly to the last three weeks, the MNB provided Ft 70 billion to commercial banks at its weekly repo tender on Wednesday.

Banks did not file any bids for the three-, six- and 12-month maturities. Bids for Ft 40 billion of the three-year maturity tender were rejected by the MNB.

The MNB accepted Ft 70 billion of bids totalling Ft 115.5 billion for the five-year maturity.

Since May 20, the central bank only accepts bids on the five-year maturity. The MNB charges an annual 0.9% on these loans.

The banks use this credit to buy state bonds at auctions on Thursdays. (portfolio.hu)
18th June, 2020

Prescription drug sales down in April

After peaking in March, sales of prescription drugs plummeted by 27.8% to Ft 42.7 billion in April, indicating that March consumption was boosted by early purchases caused by the outbreak of the epidemic, consultancy Hiflylabs found.

Compared to a year earlier, sales were down by 3.4% in April.

However, sales of prescription drugs were up by 11.7%, year-on-year, in the first four months.

The average price of these drugs went up by 1.8% from a year earlier.

In April, patients purchased prescription drugs for an average of Ft 4,370. (napi.hu; portfolio.hu)

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