Rapid tax policy measures are needed against mass layoffs

The economic impact of the coronavirus epidemic is not yet measurable, but it is already clear that a major downturn is expected in all industries. The primary reaction of the company executives is the rapid cost reduction, which has led to a significant wave of layoffs not only abroad but also in Hungary. An effective way of counteracting this is to reduce taxes and contributions temporarily, but it can be immediate and significant, says BDO Hungary.

As the epidemic spreads domestically, companies stop and send their workers home – luckily for home office or forced leave. However, even current mass layoffs, the first signs of which are already noticeable today, seem inevitable with the current regulations. This can be a serious burden, both in terms of public sentiment and budget.