Hungary: Parliament approved Budget Bill for 2017/18

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The Hungarian Minister of Economy presented the Budget Bill to the Parliament on 2 May 2017 which was approved on 13 June 2017 with 127 votes in favour and 62 votes against.

The Budget targets a GDP growth of 4.3 percent, with 4.1 percent projected for 2017. It assumes an inflation rate of 3 percent.

The tax rate will be cut down by one percentage point to 13 percent for small business, as per the approved Budget Bill. Tax benefits for families with two children will increase, giving them an additional 420,000 forints a year in disposable income on average.

In the Budget Bill, milk, eggs and poultry are included in the list of products eligible for the 5% reduced VAT rate of Hungary which follow the recent addition of pork to the list. Additionally, the government is planning to reduce the VAT on restaurant services from current 27 percent standard rate to 18 percent on 1 January 2017and to 5 percent in 2018.

The Budget Bill for 2017 holds the personal and corporate income tax rate as previous.

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