Hungary to raise VAT rate to 27%
Thursday, 22 September 2011 15:19
Hungary will implement a HUF 750 billion fiscal adjustment in 2012, announced Economy Minister György Matolcsy on last Friday. This is HUF 200 billion, more than what right-of-centre Fidesz-led government originally planned for next year. The rate of value-added tax (VAT) is to be hiked to 27% from 25% currently. A bill on the early repayment of FX debt at preferential exchange rates has been submitted with some restrictions.
National Bank of Hungary slashes GDP forecasts for 2011-12 and ups CPI estimate for 2012
The Bank’s estimate for the increase of Hungary’s gross domestic product was sharply lowered to 1.6% for 2011 from 2.6% forecasted in June, and to 1.5% from 2.7% for 2012.