Court decision: Ryanair must urgently pay a brutal fine in Hungary

The Hungarian government introduced a so-called excess profit tax (‘departure tax’) last year after the elections because of the economic crisis following the start of the Russian aggression in Ukraine. Ryanair passed the tax onto the passengers for which the Budapest Court fined them HUF 300 million (EUR 794 thousand). The Irish low-cost airline filed a constitutional challenge in July, but the Constitutional Court did not decide in their favour.

The Irish airline to pay a lot of money

According to 24.hu, Ryanair wrote in their challenge that the departure tax harms the equality of burden sharing. Based on the relevant government decree, airlines must pay the tax after each of their passengers. Its sum is HUF 3,900 or HUF 9,750 (EUR 10.33 or 25.8), depending on the destination.

The Constitutional Court decided on the issue on Wednesday, and they rejected the plea of the Irish airline. They said that they have no authority to inspect the complaint. That is because the supermajority of the Orbán government narrowed the powers of Hungary’s top court. Until the state debt exceeds 50 percent of the GDP, they have limited powers concerning taxation, levies and contributions.

Thus, Ryanair will have to pay HUF 300 million (EUR 794 thousand) as customer protection fine into Hungary’s state budget for passing the departure tax onto its passengers. Not surprisingly, they issued a hard-hitting statement which we are sharing with you below unchanged. Before, they threatened they would leave Hungary if the departure tax remained. But it seems they still make good money here. Thus, they do not even mention leaving in their statement. Here is their writing:

Ryanair condemns Hungarian government’s fake tourism tax

Ryanair, Hungary’s No.1 airline, today (21 Apr) regrets that the Hungarian Constitutional Court has reversed its previous decision to accept Ryanair’s constitutional challenge of the Hungarian Govt’s failed and illogical “excess profits” tax on loss making airlines in Hungary. However, the Constitutional Court’s decision is of no consequence as the Hungarian Govt had already replaced its illogical “excess profits” tax on airlines, with an equally ridiculous fake “eco tax” of up to €32 per passenger!

This flagrant attempt to dress up their money grab up as an “eco tax”, when it is just an excessive tax on tourism, visitors and Hungarian families. Point-to-point airlines like Ryanair already pay millions of euros every year under the EU Emissions Trading Scheme which covers emissions on flights to/from Hungary. The Hungarian Govt’s greenwashing is just a double taxation at a time when low-cost air access to/from Hungary is essential for the competitiveness of the Hungarian economy, which is suffering record inflation.

During a cost-of-living crisis in Hungary, these unjustified taxes do nothing but further squeeze Hungarian citizens/visitors and damage the Hungarian economy which is dependent on low fare air access and tourism. Ryanair already cancelled 8 routes and reduced frequencies on a further 7 routes from Budapest for Winter ’22 in direct response to the Hungarian Govt’s bizarre “excess profits” tax and its replacement fake “eco tax”. A Ryanair spokesperson said: “We call again on the Hungarian Govt to scrap this stupid “eco tax” on flights to/from Hungary which will damage tourism and jobs, while penalizing Hungarian visitors and citizens at a time of record price inflation in Hungary.”

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