Ryanair-Hungarian government war over departure tax getting serious!

Hungary continues its financial stabilisation as the war between Ukraine and Russia continues. Though the country is currently expecting stable growth in the coming years, some forms of taxation will likely remain. Furthermore, extra taxes on the air travel sector have given way to new conflicts.

Radical statement by Magyar Nemzet

This week, an article by Magyar Nemzet stated that 60 percent of Ryanair passengers are cancelling their July tickets. They firmly state that the majority of travellers reject the idea that airlines should pass on the tax on their excess profits to their customers in the ticket prices.

“Ticket buyers condemn the arrogant action of the Irish multinational on the extra tax. This tax by the government is being introduced in several sectors to balance the effects of the war on families to replenish defence funds,” – states Magyar Nemzet

They add – “The attitude of market-dominant traders, who pay similar taxes in many European countries, is not unique. Their practices are questionable not only in terms of pricing but also concerning their ground handling partners.”

• Read also: Will Ryanair reduce Budapest flights due to the departure tax?!

Response from RyanAir

In response to the statements above, the press department of Ryanair said the following to 24.hu.

“The claims made by Magyar Nemzet are false and fictitious,” – says the airline.

In their reply to the above source, Ryanair said that less than 3% of passengers travelling after 1 July had taken the opportunity to cancel their tickets with a refund of the original price. They also added that any seats which were cancelled will be available for Hungarians to buy.

“97 percent have decided to pay Márton Nagy’s idiotic excess profit tax on loss-making airlines,” – the company continues. “Minister Nagy must now apologise to Hungarian families who have to pay higher fares because of the idiotic extra tax.”

Such language towards Márton Nagy is nothing new from Ryanair. On several occasions, they have called the Hungarian economist defamatory names.

• Read also: Ryanair CEO: the Hungarian departure tax is stupid and a robbery

Hungarian taxes that remain

On the subject of taxation, let us now look at which sectors will face extra taxes in the future. Portfolio wrote an all-encompassing article based on the Hungarian Government’s recent financial statement.

Three increased special taxes could therefore remain after 2023: the airline tax, the increase in the financial transaction tax and the advertising tax.

• Read also: Government info: more details about fuel, food price caps revealed

Source: magyarnemzet.hu, 24.hu, portfolio.hu