The upswing in the number of employed which has been a trend for almost two years remained intact in the period of March-May 2012 as well compared to the same period of the previous year – the latest release of the Hungarian Central Statistical Office (KSH) concludes. The number of employed among the population aged 15-74 years during the past one year has increased by an unprecedented degree, by 63 000, from 3 million 786 thousand one year ago to 3 million 849 thousand. The rate of employment consequently increased to 50.2 percent. The number of employed among the population aged 15-64 years was up by 58 000, from 3 million 753 thousand one year ago to 3 million 811 thousand and the rate of employment thereby increased to 56.7 percent.
Hungary was one of 13 EU countries where in April a decline was registered in retail turnover. On a monthly basis in Hungary sales turnover declined by 1 percent, and the year-on-year decrease was close to the EU average.
According to the bill submitted to parliament earlier today, public sector employees can request the one-off grant provided for them until 30 September 2012.
The Economic and Financial Affairs Council of the European Union (ECOFIN) delivered its decision on 22 June to abolish the temporary suspension of commitments from the Cohesion Fund -- which verdict the Council had been passed on 13 March and which would have entered into effect from 1 January 2013. The decision could be made because the Council and the European Commission also opine that Hungary has carried out sufficient measures in order to cut the excessive deficit.
The proportionate flat rate tax system has delivered the expected results. The family tax allowance introduced together with the proportionate flat rate tax stimulates families to take on more children which impact has also been manifested in the significant increase of the number of births.
Hungary has still no intention to amend the regulation on excise tax and the sectoral extra tax. According to the official position of the government, the Hungarian provisions of law disputed by the Commission comply fully with community law.
In order to combat tax fraud in agriculture, from 1 July 2012 the regulations of reverse charge taxation shall be applied for trade transactions between domestic taxpayers for certain cereals, oilseeds and protein crops (corn, wheat, barley, rye, oat, triticale, sunflower-seed, rape and rape-seed as well as soybean).
In April 2012 gross average wages of the private sector increased by 6.5 percent, whereas net wages excluding family tax allowances were up by 3.5 percent compared to the corresponding period of the previous year – the Hungarian Statistical Office (KSH) reported earlier this morning in its statistical release.
In the past couple of months, in the midst of a protracted financial-economic crisis, the government has carried out structural reforms by which the fiscal balance was made sustainable and general government debt was set on a downward path.
The Governmnet of Hungary considers it a priority to support domestic exports within the framework of its economic policy strategy. In line with this strategy the key objective of the government is -- via providing financing for the export of Hungarian goods and services for enterprises based in Hungary – to enable them to fully exploit their export opportunities that would therefore increase their competitiveness on external markets and to stimulate the Hungarian investments of foreign entrepreneurs.