Thursday , September 20 2018
Breaking News
Home / Hungry / Change in approach improves Hungarian tax collection rate
Change in approach improves Hungarian tax collection rate

Change in approach improves Hungarian tax collection rate

BUDAPEST: Tax revenues in Hungary were 5% up year on year in 2017, by HUF 609 billion, the National tax and Customs Administration (NAV) announced. The increase is due to a tendency of lower tax evasion, NAV chief András Tállai told state news wire MTI, noting that the increase outpaced the rate of GDP growth.

Total tax revenues amounted to HUF 13.402 trillion in 2017. The total rose even as the tax burden on families and businesses was cut by HUF 860 bln, noted Tállai. The reason for the growth is that tax rates have decreased and it is no longer worth dodging taxes, the NAV head was cited as saying by news portal index.hu. Hungary has the lowest corporate tax rate and the second lowest personal income tax rate in the European Union, he added. A change in approach at NAV, such as becoming more client-centered and providing assistance to taxpayers, also supported the improved tax morale, Tállai noted. NAV has a new policy of cooperating with clients, as opposed to imposing fines or issuing debit collection orders. This means that taxpayers who fail to pay their taxes receive a notice. By complying with the notice, taxpayers avoid paying fines or additional costs.