You can send the kata to the ground according to the tightening according to BKIK

Earlier this summer, at the suggestion of László Parragh, president of the Hungarian Chamber of Commerce and Industry, Parliament voted in favor of kata austerity, known as the “lex Parragh”, which provoked great resistance from companies, since they felt that the changes were over their heads. For this reason, the management of BKIK decided to ask the entrepreneurs about various aspects of the kata tax in the framework of an empirical research, in cooperation with the Budapest University of Economics and the Szent István University. This could be a good opportunity to make informed proposals to solve the current problems of the kata tax rate. In a survey conducted in late July and early August, 6,042 companies responded to questionnaires.

The survey revealed that the majority of respondents believe that companies will be adversely affected by the new kata rules, which will take effect next year.

Firms active primarily in the intellectual field fear that the restrictions will affect them through no fault of their own. There were also a large number of respondents who said that kata could have a similar trajectory to the simplified business tax (eva) which was tolerated by the economic miracle weapon within a few years and then abolished.

“In addition to the fact that the original aim of the kata was to reduce the administrative burden on small businesses and also to launder the economy, experience has shown that abuses have occurred.

Furthermore, this was only exacerbated by the coronavirus situation, which set off a cost-cutting chain reaction at several companies, where the outsourcing of some employees to a cat contractor raised hopes of significant savings on public charge.

“- emphasizes Elek the Great, a President of BKIK, who coincides with the objective of the legislator, the need for toughening to avoid hidden jobs, at the same time criticizes the solution proposal presented to legislators by the president of the National Chamber of Commerce, László Parragh.

Problems must be identified and addressed

On the one hand, it finds the lawnmower-like solution problematic: a surcharge of more than HUF 3 million charged to a customer in one year also affects the nearly 400,000 cat entrepreneurs who will be subject to the restriction without having blame, and the rule is enough. easy to play.

According to Elek the Great, the kata must be rethought from its roots, in accordance with its original spirit.

The expert also pointed out that the type of tax originally created to trigger the public charge of personal payments was not sufficiently harmonized with the temporary changes in the minimum wage (in 2013 it was 98 thousand HUF, while in 2020 the minimum wage was already of 161 thousand HUF) and their contributions to social security. Income limits were increased (from the original 6 million HUF to 12 million HUF) without any change in tax rates, including social security.

The president of the BKIK believes that through consultations it is convenient to educate entrepreneurs about the conditions in which the kata can realistically and permanently survive in the internal tax system to maintain as much as possible of its favorable properties without violating logic budgetary.