Towards an Incentive Tax System
15:30, június 10, 2018.
Reform of the Tax System and Tax Administration in Hungary
PhD, Assistant Professor,
Institute of Enterprise Management, Óbuda University,
Research Fellow, Public Finance and General Government Institute,
National University of Public Service,
member of the Monetary Council, National Bank of Hungary
Executive Director, Chief Economist,
National Bank of Hungary
Published in: Public Finance Quarterly 2018/2. (p. 196-215.)
Summary: The secret to successful economic convergence lies in broad-based cooperation between the public and private sectors. The tax system is a priority area, since on the one hand it generates the revenues for the functioning of the state, while on the other hand it regulates the basic conditions of the private economy. In this regard, the tax reform implemented in Hungary after 2010 was a milestone, as it not only changed the tax structure in a growth-friendly manner, but also served to simplify the tax system and reduce tax evasion. The reform of the tax administration was launched in a second round in 2016, with the aim of establishing a cooperative, client-oriented tax authority which encourages taxpayers to adhere to the rules through modern means and appropriate incentives. This study provides an overview of the stages and results of the transformation of the tax system as well as the tax administration to date. By citing successful international examples, we offer suggestions and draw attention to the possibilities of further reform.
Keywords: public finances, fiscal policy, tax system, tax administration, institutional system, macroeconomics, the behaviour of economic operators, cooperation
JEL-codes: H20, H21, H3, H71, H83