Comprehensive tax reform

A comprehensive tax reform process has been started by the government, Prime Minister Ferenc Gyurcsány claimed yesterday in the Parliament when presenting a five-year tax code bill. "More responsibility and more opportunity" are the main underlying principles for the changes, he said. Personal income tax and VAT will be lowered, and a new luxury tax will be introduced, pointed out Mr. Gyurcsány. Not tax cuts but tax increases were the typical feature of the last three years, said opposition finance spokesman Mihály Varga. But he agreed in a need for tax cuts in the future.