Gulyas: Tax cuts to continue

The government will continue cutting taxes, Gergely Gulyas, head of the Prime Minister's Office, told a regular press conference on Thursday. Speaking of the proposal on tax changes which the finance ministry submitted to parliament last week, Gulyas said that the social contribution tax will be cut by a further 2 percentage points to 17.5 percent in 2019. Depending on economic development, the government hopes to cut rate down to 11.5 percent over four years, Gulyas said. Family allowances will continue to rise, with families raising two children getting 40,000 forints (EUR 122.6) monthly from 2019, he said. Pensioners taking on jobs will only have to pay the personal income tax, and the VAT of milk is to be cut to 5 percent, Gulyas said.