Commission Report 2002 (Hungary)

Chapter 10: Taxation

Alignment of legislation has continued in the area of excise duty, although some more progress is still needed. No progress can be reported on VAT, where alignment has not yet been completed. As regards administrative capacity, Hungary has continued modernising its tax administration and improving infrastructure and information technologies. Hungary has also taken significant steps to prepare for interconnectivity and inter-operability between the Hungarian system and the EU. Further efforts will be necessary to ensure that the computerised tax information system is fully operational ahead of accession, including links with the customs information system and interconnectivity with EC systems, which is a particularly urgent priority within the Action Plan. Review of legislation by the Commission to ensure compliance with the Code of Conduct for Business Taxation is in process. As foreseen in the Action Plan, preparations have started for the implementation of the Central Liaison Office and the Excise Liaison Office. The priorities in the field of taxation have been partially met. The measures of the Action Plan are on track.