Hungary’s FinMin announces new tax compliance measures

The government will take new measures to improve tax compliance and reduce the grey economy, finance minister Mihaly Varga said in an interview for the pro-government daily Magyar Nemzet. In particular, the measures included connecting more services sectors — car washes and parking ticket machines, to the tax administration (NAV). This will be an extension to the online cash register system, which was first introduced for retailers in 2014 and was then widened to include some services sectors last year. The system together with the electronic road freight control system has generated around HUF400bn of additional revenue so far and this has enabled the government to reduce taxes, Varga pointed out. The estimated impact from the planned extension of the online cash register system is in the order of hundreds of millions of forints, he said. This is not much but it will importantly lead to further whitening of the economy and will help decent businesses, Varga underlined.

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