Commentary
Economy & Tech
Unlocking the Economic Promise of India–V4 Relations
10 April 2025
The Hungarian tax system on individuals has an overall redistributive effect from the poor to the rich.
In academic circles, it is commonly accepted that the personal income tax system designed by Fidesz, Hungary’s ruling party, favours the rich and discriminates against the poor. This view is increasingly accepted by thought leaders of the democratic opposition, though it is far from a straightforward conclusion.
In the first two decades of the 2000s, using a single rate to tax personal income enjoyed great popularity in Hungary, even among those who otherwise opposed the ruling regime. Popular belief held that taxation directly proportional to income is not only fair but provide a much-needed incentive for greater economic performance. However, it is important to point out that personal income tax is just one of several types of taxes paid by individuals. Crucially, for instance, the amount of value-added tax or VAT levied on consumption is almost twice the amount collected by the state as personal income tax. As for its effect on the economy, there is no reliable evidence that flat taxation plays a major role in spurring economic growth.
Editor’s Pick: Recovery and Resilience Funds: We Could All Be Paying The Bill
Subscribe
Democratic security comes at a price. What is yours? By subscribing or donating now gain access to analysis, forecasts and scenarios by leading analysts and reporters who monitor democratic risks and develop policy debate from Central Europe on Central Europe.
MonthlyVAT included
See all details
- Full access to articles and all reports in PDF
- Weekly outlook on democratic security in CEE delivered by e-mail
- Weekly newsletter with essential highlights
- Invitations to all Visegrad Insight events online and offline
AnnualVAT included
See all details
- Individual subscribers only. Check our CORPORATE OFFER below
- 15% Discount (8 EUR off monthly cost if paid annually)
- Full access to articles and all reports in PDF
- Weekly outlook on democratic security in CEE delivered by e-mail
- Weekly newsletter with essential highlights
- Invitations to all Visegrad Insight events online and offline
Student OR Donation
See all details
- Full access to articles and all reports in PDF
- Weekly newsletter with essential highlights
- Some Visegrad Insight events invitations
I am a representative of an institution/business. Is there a corporate offer?
The annual subscription for up to ten institutional users: EUR 999
GO TO CHECKOUT
For a tailor-made offer email us: contact@visegradinsight.eu
- Access to all articles for your team
- Access to all Reports for your team
- Every Monday a Weekly Outlook with an update on key developments in Central Europe delivered by e-mail
- Every Thursday a newsletter with the most important highlights and invitations
- Personal invitations to Visegrad Insight Events
- Foresight, policy, and risk analysis reports (on-demand)
Intelligence prepared by a group of Visegrad Insight Fellows from all across
Can I receive an invoice?
Yes. You will receive a receipt immediately after purchase and a VAT invoice upon request. The subscription amount includes tax. In case of a donation, there is no tax.
Are my credit card details safe?
Yes. The payment is processed by STRIPE www.stripe.com entrusted also by Amazon, Zoom, Booking.com and used by other global NGOs and businesses in the world. We do not store your credit card details.
How modify or cancel my subscription?
At any moment you can manage your subscription and account details. Sign in to modify or cancel.
