FACTBOX-Hungarian PM unveils economic plan

BUDAPEST, June 8 (Reuters) - Following are details of an economic "action plan" announced by new Hungarian Prime Minister Viktor Orban in Parliament on Monday:

TAX MEASURES

*Raising taxation on banks, insurers and leasing companies to generate 200 billion forints ($1.02 billion) for the state this year instead of 13 billion forints earlier planned for 2010.

The government plans talks with financial institutions about the base of the higher tax which should stay in force for 3 years and would be phased out gradually.

*Introducing a flat income tax over a period of 2 years

Personal income tax would be streamlined to one rate and cut to 16 percent, as well as lowering the gross income base on which taxation is charged.

Currently there are two tax rates -- one of 17 percent for annual income up to 5 million forints, and one of 32 percent for incomes above that amount.

The previous government had passed a law raising the threshold for the lower 17 percent rate to an annual income of 15 million forints.

* Phasing out tax credits for low earners over 2 yrs

* Cutting corporate tax to 10 pct from 19 pct for small and medium-size companies.

* Eliminating 10 "minor taxes" on small- and medium-size companies, simplifying administrative procedures for companies

SPENDING MEASURES

*Freezing certain expenditures in budget institutions to save 120 billion forints.

*Cut the total wage cost of companies owned by the state by 15 percent, to save 48 billion forints.

*Introduction of a 2 million forints monthly gross wage ceiling in the public sector. Measure would also affect the National Bank of Hungary.

REGULATION MEASURES

*Ban on foreign currency mortgage lending.

*Freezing public utility prices, talks with the services companies on pricing.

*Extending a ban on the eviction of borrowers who have defaulted on mortgage loans until Dec 31., 2020.

(Reporting by Sandor Peto; editing by Patrick Graham)