Nagy: 2025 will be a breakthrough year
Márton Nagy, National Economy Minister, said 2025 would be a 'breakthrough year'.
At an awards ceremony organized by the Joint Venture Association in Budapest on Saturday evening, Minister Nagy said the outlook was supported by high employment, real wage growth, increasing consumption, a pickup in tourism, more home sales, growing construction sector orders and higher car sales.
He also pointed to steps to make cheaper credit available to SMEs and said the government was weighing raising the headcount threshold for eligibility for the Small Business Tax (KIVA).
Minister Nagy said an earlier launched economic policy action plan that aimed to boost purchasing power, ensure affordable housing and scale up SMEs had been expanded with a scheme to support the construction of 100 new factories, tax cuts and measures to bring down inflation, especially food inflation.
The automotive, pharmaceutical and food industries, along with other high value-added sectors, will benefit from the new factories scheme, while personal income tax for families raising children will be cut, he added.
From October 1, mothers of three children will be exempt from PIT, he said. The measure will benefit 250,000 women and cost the budget an annual HUF 170bn, he added.
He noted that a PIT exemption for mothers of four was already in force, impacting 70,000 women and leaving them with an additional HUF 50bn a year.
Minister Nagy said mothers getting CSED and GYED infant support would also be exempt from PIT. The measure will benefit 30,000-40,000 women a year and cost the budget HUF 10bn, he added.
Addressing food price inflation, Nagy said talks with retailers were ongoing. If an agreement with supermarket chains on keeping prices can't be reached, prices will be regulated and margins capped, he added.
From October 1, Minister Nagy said pensioners would be eligible for VAT refunds on purchases of fruit, vegetables and dairy products, up to a limit.
Magyar Suzuki, KOMETA 99 and Novopayment were among the big companies acknowledged at the awards ceremony. Mid-sized companies recognised at the Companies for the Future Award ceremony were Billingo Technologies, Waberer Medical Center and GB Solutions.
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