An alternative austerity plan

Employers'' organisations propose a 22 percent general VAT-rate instead of 20 percent now, Világgazdaság has learned. They also recommend to increase the reduced rate to 17 percent from 15 percent now. These changes would enhance budget revenues by forint 180 billion, roughly the same sum as the government''s version for VAT-hike, i.e. raising the reduced rate only, from 15 to 20 percent. But the employers'' version would mean a smaller increase in burdens on the poorest population. Does the government really want to put the largest burden on those with the least income, employers will ask today at a meeting of the Conciliation Council, a forum for discussion between employers, employees and the government. VGO