Increasing VAT in Hungary from 2012
There is no noubt VAT is increasing from 25% to 27% from 1st of January in Hungary.
12 November 2011
Higher inflation will might have impact on service and product prices in Hungary. Customers will pay the extra charge, because companies will not be able to accept an extra negative effect in those days when their revenues are also under pressure. New VAT rate is just one thing from others affecting companies. The government's strategy turns business outlook unpleasent about how to be profitable in Hungary. Instead of improvments in consumer market, the government wants to suck fresh blood from the economy to let both companies and customers suffered. What is the maximum of tax revenues will make Hungarian government happy?
Increase in VAT will support slow in economy. What's more, the whole Hungarian market can become standstill. Today when online sales are increasing , why customers would pay extra price on the local market. Or why not go shopping in neighbourhood countries thanks to price-sensitive approach? Thanks to deeper and deeper decline in Hungary's economic competitivness, government goal to be improving the country’s business environment will be hardly achived.
Political communication and real political actions are in disharmony and against business planning whether companies think in short, medium or long term. Loss of confidence in politics may result widespread anger.
Most popular news
Sign up for updates