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"A reduction to 18% is not realistic in Hungary, but we are looking at several options for the new rate," Veres said, adding that plans will be discussed with relevant interest groups in the coming days, and the proposal revealed in about ten days. He noted that each percentage point reduction costs the budget some HUF 50 billion (USD 241 million) in revenue fallout.
The minister also said that there will be significant changes in the system of local business taxes, which are currently paid after gross revenues and form a large part of local governments' budgets, at a total of HUF 350 billion each year. Veres confirmed that one possibility being considered is reducing the current maximum 2% rate, while at the same time raising the corporate tax rate, which is based on profits. A final decision will be made in June, and the proposal submitted to parliament in the autumn, he added.
