Evolution of taxation of private agricultural entrepreneurs in Hungary (2000-2010)

Gáspár, Andrea

Keywords: taxing, tax burden, changes, economic impacts

The organisation and farming methods of agricultural production in Hungary are very nowadays colourful, with a wide range of scales and structures, showing fluctuations in efficiency. Even their structure is different from those used by most member states of the European Union. This study examines the evolution of the tax burden of agricultural entrepreneurs between 2000-2010, including the number of taxpayers and their average tax burden. The number of private agricultural entrepreneurs who filed an income tax return was 16,647 in 2000, and 13,155 in 2010. Of this number 43.1% (in 2000) and 52.4% (in 2012) declared a profit. Using statistical methods, my analysis showed a relationship between the evolution of tax burdens and the changes in tax laws. In the case of private entrepreneurs the reasons for the growth in income was the increase in the minimum wage (which determines the tax base and also influences the withdrawal of entrepreneurs), the growing number of tax audits and the increase in the extent of possible sanctions. Per capita expenses for private entrepreneurs rose by 82% over the examined period. The change in tax burdens and the relationships between the factors causing the change were examined.

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