Hungarian Finance Minister Says No Big Tax Changes On The Horizon

by Ulrika Lomas, Tax-News.com, Brussels

18 July 2001

The Hungarian Finance Minister, Mihaly Varga delivered a message of reassurance at a press conference on Monday. At the meeting, which was held to evaluate progress over the first six months of 2001, Mr Varga said that fiscal policy would remain stable throughout the year, and that fears about a loosening of the economy are unfounded.

'There have been some pessimistic forecasts saying that this will be the first year when, generally through a rise in consumption, certain new trends will lead to disequilibrium,' he told reporters. 'We have not found this justified on the basis of data on the first quarter and the first half of the year.' Mr Varga went on to reassure Hungarians that although in the first quarter real wages had risen by 4.5%, this had not in any way threatened either state finances, or the general state of the economy.

The Minister then reiterated his previous statements regarding the tax system: 'As we have stressed in the autumn of 2000, we do not wish to take any measure to reduce or increase taxes. Naturally smaller changes are possible, but no major changes are expected until the end of 2002.' He ended with the promise that smaller changes to the pensions system and support for family farmers would not affect tax bands.

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