Tax policy issues – taxation of Hungarian agricultural activity

Molnár, Barna – Goda, Mátyás – Kocsisné Andrásik, Ágota

In modern market economies the majority of state revenues is derived from taxation. Since 1988 the Hungarian regulations on taxation follow the practices of developed countries. The system of burdening is focused/based more and more on consumption instead of production as a result of tax reforms. The different types of enterprises and their activities are subjected to various taxation rules. Unfavourable conditions in agriculture (higher risk, lower profitability) are controlled through the adjustments or reduced tax rates and application of various kinds of tax allowances. The study examines both the theoretical and practical elements of income taxation in the enlarged Europe, particularly the tax schemes employed in Hungary’s agriculture in the period around the EU accession. These investigations are focused also on prospective changes and their consequences for the near future in this regard. In new member states lower income tax rates are applied, and agriculture is a distinguished sector in this regard of the economy.

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