The lawmakers in Hungary are planning to cut down taxes by 50% on the capital gains on crypto with an aim to attract billions to its budget most probably by 2022. As announced by Mihály Varga, the Economy Minister of Hungary, the tax on crypto earnings is going to be slashed to 15% in 2022, which is almost half of the present rate, 30.5%.
Crypto Investors in Hungary to be Offered Major Tax Break Soon
The lawmakers of the country are looking forward to making Hungary become more competitive in the period of the COVID-19 pandemic. The recent move of a crypto tax cut by lawmakers of Hungary is expected to attract billions of Hungarian forints to the budget of the country.
Mihály Varga mentioned the stimulus program of the government through the year 2022, in a video that appeared on Facebook on Tuesday.
This move was addressed as a part of the COVID-19 relief efforts as the lawmakers of Hungary are considering a crypto tax cut to 15% of the capital gains, which is down from the current rate of 30.5%.
European Union Country in Preliminary Discussions Surrounding a CBDC
In the month of August 2020, a representative from the Hungarian National Bank joined a preliminary discussion regarding a Central Bank Digital Currency (CBDC). The discussion was with colleagues from the Swiss National Bank, the Bank of England, and others in the discussion of the potential rollout of the Central Bank Digital Currencies in the near future.
In addition to this, it should be noted that Hungary is not the only European country that has introduced tax-based incentives for the owners of cryptocurrencies in their country. Portugal, for instance, does not require its customers to pay any taxes at all provided that they are not engaged in any kind of professional trading.