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Brussels is going after Hungary's tax cuts, says official

András Tállai, state minister at the Finance Ministry, has revealed that because Hungary is reducing its taxes at the fastest rate in the European Union it has become the target of Brussels bureaucracy

András Tállai, state minister at the Finance Ministry, has revealed that because Hungary is reducing its taxes at the fastest rate in the European Union it has become the target of Brussels bureaucracy.

"Hungary is the biggest tax-cutter in the European Union and wishes to retain this title," Tállai told MTI in an interview. He added that while the Hungarian government has become a target for Brussels, it will not give up its tax policy aimed at favoring families with children.

According to Rmx.news, Tállai said the tax policy of the government is also confirmed by the fact that the country is among the ten most desirable investment targets in the world.

Last year alone, Hungary attracted 98 major foreign investments with a total value of HUF 1,380 billion (EUR 4.31 bln) which created 17,000 jobs. Instead of using Hungary as a positive example, Brussels is more interested in altering the favorable Hungarian environment through tax rises and abolishing preferential schemes.

He said Hungary has also made major strides in reducing the grey economy through its centralized database of all shop tellers and the real-time electronic tracking of commercial goods transports. Both of these systems are regarded as best practice and most other EU countries have shown an interest in emulating them.

He said that in 2017, Hungary was the EU country with the largest tax cuts and it will likely retain this position for 2018 as well. In 2017, central tax cuts left an additional HUF 290 billion in the economy, while in 2018 that number stood at HUF 270 billion.