Hungary VAT rise on the Horizon

Hungary is targeting to improve the 2012 budget balance by 750 billion forint, 200 billion forint more than planned, Economy Minister Gyorgy Matolcsy said. Of the planned savings, 450 billion forint will come from higher revenue, including a value-added tax increase to 27 percent from 25 percent, Matolcsy said at a press conference in Budapest today. The higher VAT rate will yield 150 billion forint in extra revenues, which the government will set aside in a special budget reserve, Matolcsy said. Total budget reserves will amount to 300 billion forint next year, according to the minister Source: Edith Balazs, Bloomber