Growth in every type of tax

Hungarian tax authority collects 19% more revenues in H1 than a year earlier.Some two thirds of the HUF 635 billion increase came from traditionally
key tax revenues, APEH President János Szikora told a press conference.

Tighter control by the tax authority led to 11% higher (HUF 167 bn) revenues in
H1 than in the first half of 2006. APEH said that while it carried out 10% less
checks in H1 (118,700), the tax difference dug up (HUF 197 bn) was up 24%
yr/yr.

VAT revenues totalled HUF 1,665.8 bn, 14.3% more than in the base period. While
this may seem an extraordinary result, we must note that the medium rate at
this tax was raised by 5 percentage points.

Nevertheless, considering the fact that retail consumption declined by 0.8%
yr/yr (based on Q1 GDP data) or by 0.9% (based on January-May retail trade
data), VAT revenues turned out really well in the first six months. VAT refund
claims rose to HUF 727.6 bn from HUF 624.8 bn, resulting in HUF 938 bn net
revenues, up HUF 106 bn yr/yr.

Personal income tax (PIT) revenues amounted to HUF 801 bn in H1, a 6% growth
from the same period of 2006. It is noteworthy that APEH received 140,000 more
PIT declarations in the first half of 2007 than in H1 last year (4.362 m).

Corporate tax revenues totalled HUF 201 bn in H1,up HUF 10 bn from the base
period and the number of declarations grew by 2,000 to 327,000.

APEH collected HUF 1,488.3 bn worth of social security contributions in the
first half of the year, 18% more than a year earlier. Employers' contributions
went up HUF 8 bn to HUF 100 bn and employees' contributions rose HUF 17.5 bn to
HUF 45.7 bn.