NewsLetter

Social security contributions, income tax to be lowered under reform plan

In addition to reductions in VAT and local business tax, the government's has outlined plans to reduce employers' fixed sum health contributions from HUF 3450 per month to HUF 1950 in November, in line with earlier plans, before being phased out entirely in November 2006. Furthermore, in 2007 employers' social security contributions will fall from 29% to 26%, and then further to 24% in 2009. The measures will save employers HUF 80 billion in 2007.

Wal-Mart CEO confirms plans for Hungarian entry

Lee Scott, CEO of the US's Wal-Mart Stores, the world's largest supermarket chain, said the company is looking to expand in central and eastern Europe, naming Poland, Russia and Hungary as potentially attractive countries, the Financial Times reported on Monday.

Government announces HUF 1 trillion tax reform plans

The government is to reduce the overall tax burden by HUF 1 trillion (USD 4.9 billion) through a series of measures to be introduced over the next five years, announced prime minister Ferenc Gyurcsany in parliament on Monday. Final proposals will go before parliament in September.

Logistics firm Geodis opens Budaors center, plans 40% growth this year

French logistics firm Geodis completed another step in its Eastern European expansion Thursday by officially opening a 29,000 square meter logistics platform in Budaors (near Budapest). The new facility is expected to help Geodis realize its plans of 40% revenue growth in Hungary this year from last year's EUR 12.27 million.