NAV collected more taxes than expected in 2022

In 2022, the tax authority collected HUF 20.602 billion in taxes, surpassing the previous year’s revenues by 17.2%, according to the yearbook. What is even more remarkable is that this year’s tax revenues exceeded the budgeted amount by nearly HUF 2.5 billion.

The tax authority attributes this outstanding result to three main factors:

Firstly, more revenue was generated from employment-related tax types than expected. The yearbook attributes this to “wage growth exceeding forecasts” and “favorable labor market trends.” However, the significant decrease in the opportunity for the simplified tax regime (KATA) likely indirectly contributed to this as well.

Similarly, inflation contributed to the high tax revenues, which according to the tax authority, exceeded expectations. As a result of inflationary processes, an additional HUF 1.3 billion was collected in value-added tax (VAT).

Finally, the tax revenues were naturally increased by the special taxes on excess profits. This trend is expected to continue in 2023 due to the expanding range of special taxes.