BUDAPEST (Reuters) -Hungary will permit firms to pay their company taxes in euros or U.S. {dollars} together with paying in forints, finance minister Mihaly Varga mentioned in a Fb submit on Saturday.

“For firms who earn revenues partly or absolutely in a overseas forex, the brand new rule might simplify processes,” Varga wrote, including that the choice was out there for all firms.

He mentioned the change would simplify bookkeeping for firms whereas making certain taxes saved flowing to the state and the funds stays balanced.

No additional particulars had been instantly out there. There was a authorities press convention scheduled for 0900 GMT.

The forint, central Europe’s worst performing forex to this point this 12 months, hit a file low at 416.90 per euro earlier this month because it was pressured by an absence of settlement with the European Union over restoration funds, hovering inflation, a low stage of overseas change reserves and a twin deficit.

A soar in gasoline costs additionally pressured the forint lately because it might worsen Hungary’s commerce stability, merchants and analysts have mentioned.

Hungary, a small export-driven economic system, is residence to manufacturing crops of enormous German carmakers together with Audi and Daimler.

(Reporting by Anita Komuves and Krisztina Than; Enhancing by Toby Chopra)

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