Minister Nagy explained Orbán’s announcements: details on VAT refunds and tax exemptions 🔄

Budapest, February 24, 2025 (MTI-ECONEWS) – National Economy Minister Marton Nagy said 2025 would be a “breakthrough year” at an awards ceremony organised by the Joint Venture Association in Budapest on Saturday evening. He explained Orban’s announcements in detail, here are the details on VAT refunds and tax exemptions:

As we wrote yesterday, PM Orbán announced unique tax exemptions, possible food price caps, and a Pride ban in the State of the Nation speech; details are HERE. After that Nagy said the outlook was supported by high employment, real wage growth, increasing consumption, a pickup in tourism, more home sales, growing construction sector orders, and higher car sales. He also pointed to steps to make cheaper credit available to SMEs and said the government was weighing raising the headcount threshold for eligibility for the Small Business Tax (KIVA).

Nagy said an earlier launched economic policy action plan that aimed to boost purchasing power, ensure affordable housing and scale up SMEs had been expanded with a scheme to support the construction of 100 new factories, tax cuts and measures to bring down inflation, especially food inflation. The automotive, pharmaceutical and food industries, along with other high value-added sectors, will benefit from the new factories scheme, while personal income tax for families raising children will be cut, he added.

From October 1, mothers of three children will be exempt from PIT, he said. The measure will benefit 250,000 women and cost the budget an annual HUF 170bn, he added. He noted that a PIT exemption for mothers of four was already in force, impacting 70,000 women and leaving them with an additional HUF 50bn a year. Nagy said mothers receiving CSED and GYED infant support would also be exempt from PIT. He added that the measure will benefit 30,000-40,000 women a year and cost the budget HUF 10bn.

Nagy said talks with retailers were ongoing to address food price inflation. If an agreement with supermarket chains on keeping prices can’t be reached, prices will be regulated, and margins will be capped, he added. From October 1, Nagy said pensioners would be eligible for VAT refunds on purchases of fruit, vegetables and dairy products up to a limit.

At the event, Dr. Ágnes Fábián, President of the JVSZ, proudly reported on the development of the Association’s “Companies for the Future Award ” initiative, which was launched four years ago by the JVSZ Board with the aim of creating a tradition to present companies that are future-oriented, future-building and exemplary programmes from which the Hungarian economic sector can build and develop. “It is a testament to the Association’s value-creating power that the prestige of our awards has grown over the years, and today we have more than 300 people celebrating the most outstanding companies and future-building programmes in the Hungarian economy.”

• read also: Historic moment: Hungary returns to the sea – Trieste port construction started, PHOTOS

Awards to exemplary large and medium-sized companies

For the main prizes, companies were ranked according to a set of criteria compiled by OPTEN, while the special prizes were open to entries. A highly prestigious jury of experts decided the order of the winners in each category. For the third year running, the Ministry of National Economy has supported the initiative, with Minister of National Economy Márton Nagy, as the event’s patron, presenting the prestigious awards to exemplary large and medium-sized companies that have a positive impact on our future.

Magyar Suzuki, KOMETA 99 and Novopayment were among the big companies acknowledged at the awards ceremony. Mid-sized companies recognised at the Companies for the Future Award ceremony were Billingo Technologies, Waberer Medical Center and GB Solutions.

Winners of the 2 categories of the main prizes:

Medium Enterprise category

• 1st place: Billingo Technologies Zrt.
• 2nd place: Wáberer Medical Center
• 3rd place: GB Solutions Zrt.

Large business category

• 1st place: Magyar Suzuki Zrt.
• 2nd place: KOMÉTA 99 Zrt.
• 3rd place: Novopayment Ltd.

Winners of the 5 special prize categories:

Best Talent Program supported by Henkel Hungary

• 1st place: Foxconn Group
• 2nd place: E.ON Hungária Group
• 3rd place: SkillX Technologies Zrt.

Best ESG Program supported by E.ON Hungária Group

• 1st place: SPAR Hungary
• 2nd place: Emerson I NI
• 3rd place: MBH Bank

Best Technology Investment supported by Foxconn Group

• 1st place: Schneider Electric Hungary
• 2nd place: MAM-Hungária Kft. and Com-Forth Kft.
• 3rd place: SkillX Technologies Zrt.

Best Next Generation Company with the support of MAM-Hungária Kft.

• 1st place: Király Sport Association (Király Sportegyesület)
• 2nd place: KITE Zrt.
• 3rd place: Robotizálunk Kft.

Innovation Hungarian! Special prize with the support of TV2 Media Group

• 1st place: Kuube Hungary Kft.
• 2nd place: Resysten Hungary Kft.
• 3rd place: PEAK

Read here more news about tax and VAT in Hungary

UPDATE

Ministry assures simple procedure for pensioners’ VAT rebates

Budapest, February 24, 2025 (MTI-ECONEWS) – The procedure for pensioners to claim rebates for VAT on staples such as fruit, vegetables and dairy products, will be “extraordinarily simple”, the National Economy Ministry said in a statement on Monday.

Days after the planned rebates were announced, the ministry dismissed comments on the measure by the National Association of Accountants, calling them “cheap political fear-mongering”. The ministry said pensioners would be issued with a card to avail of the rebates which they would get automatically along with their monthly pension payments.