THE HUNGARIAN TAX SYSTEM IN INTERNATIONAL COMPARISON WITH SPECIAL REGARD TO THE RESPONSE TO THE ECONOMIC CRISIS
THE HUNGARIAN TAX SYSTEM IN INTERNATIONAL COMPARISON WITH SPECIAL REGARD TO THE RESPONSE TO THE ECONOMIC CRISIS

Summary/Abstract: The outbreak of the global financial and economic crisis compounded Hungary’s economic problems. In October 2008, Hungary had to ask the international financial institutions for help to restore the country’s solvency. The IMF and the EU offered a standby loan package of approximately EUR 20 billion to the country. In return for the package the government announced a set of economic measures, including some important modifications in tax regulation. These changes affected a wide range of taxes. This paper examines the regulatory purposes of the modification, the actual output, and the intended and unintended consequences of these measures on the Hungarian economy. The policies introduced by the Bajnai Government have successfully stabilized the economy without significant growth and activity sacrifice (compared to the other European countries). However, the problem of indebtedness has not disappeared and the intended changes in revenue and expenses structure have not happened yet.

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