Alexa
  • Directory of Taiwan

Hungary asks EU to mull higher tax on luxury goods

Hungary asks EU to mull higher tax on luxury goods

Hungary's economy minister has asked the European Union to consider allowing a higher tax rate on luxury goods to help boost budget revenues.
Gyorgy Matolcsy wrote in a letter to EU Taxation Commissioner Algirdas Semeta released Wednesday that in case of a favorable decision by the EU, Hungary would weigh introducing a 35 percent value-added tax rate on luxury items. The normal VAT rate for most products in Hungary is 25 percent.
Lower-than-expected economic growth is forcing Hungary to increase tax revenues to meet strict budget deficit targets. The government has pledged to hold the budget gap at just under 3 percent of gross domestic product this year and at 2.5 percent of GDP in 2012.


Updated : 2021-04-24 00:31 GMT+08:00