Hungary’s tax-to-GDP fell by 1.7 percentage points last year, more than in any other OECD country, Deputy Finance Minister András Tállai told MTI, citing the OECD’s latest Revenue Statistics Report released days earlier.
Thanks to the government’s policy of reducing taxes, Hungary has become a model for tax cuts, Tállai said. He added Hungary had shown the biggest drop in its tax-to-GDP ratio among OECD members in 2017, too, and the second-sharpest decline in 2018. Hungary’s tax-to-GDP ratio reached 35.8% in 2019 from 37.5% in 2018.
The OECD attributed the decline to “a decrease in corporate income taxes following the removal of the compulsory tax advance supplement on business taxes, as well as smaller decreases in a number of other taxes”. Tax-to-GDP ratios stood at 34.9% in the Czech Republic, at 35.4% in Poland and at 34.7% in Slovakia last year, according to the OECD report.