Is the Hungarian government ready to scrap excess profit taxes?
In March, the Hungarian government will start preparing next year’s budget. The new budget could also remove the controversial excess profit taxes.
The Hungarian government may potentially scrap the controversial excess profit taxes in next year’s budget, Minister of Finance Mihály Varga told Index.hu. The measure hit airlines, telecommunication companies as well as the banking and energy sectors.
In the following weeks, the Hungarian government ought to start preparing next year’s budget. The new economic policies would not differ significantly from that of this year. Next year’s budget should also focus on energy protection, but in addition to the energy bill, an important part is going to be the upkeep of the maintenance of family allowances and defence expenditures.
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“I am afraid that, given the Russian-Ukrainian war and the failed sanctions imposed by Brussels, the focus of next year’s budget will have to be on protecting the energy supply” – said Minister of Finances Mihály Varga to index.hu.
“Let’s not forget that we are also progressively phasing out the excess profit taxes, as we promised that it will only remain in its current form for two years.”
“We will certainly reduce the tax burden on the banking system and the pharmaceutical industry” – promised Mihály Varga. “In some cases, we talk about a quick prospect of phasing out, in other cases the process will be more graduate.”
The finance minister’s statements on the tax burden on the pharmaceutical industry represent a sharp change from the government decree issued just over 3 months ago.
Back then the decree introduced a special levy on pharmaceutical manufacturers on the basis of the annual accounts. The decree entered into force on 24 December.
Windfall taxes were announced back in May 2022 by Prime Minister Viktor Orbán. The measures were most notably publicly criticised by Rynair CEO Michael O’Leary. He held a press conference at short notice in Budapest last September.
“The Hungarian Govt’s idiotic ‘excess profits’ tax on the loss-making air transport sector (and Hungarian citizens/visitors) has done nothing but damage Hungarian tourism, connectivity, traffic, and jobs as evidenced by these severe cuts to our Budapest winter schedule, which were made in direct response to this ridiculous “excess profits” tax” – said O’Leary to selected media, including Daily News Hungary.
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Source: index.hu
… Alternatively, increase our corporate tax rate to be more in line with the rest of the world, who are all moving to a minimum effective tax rate of 15 (fifteen) percent. Or raise VAT – even though that’s paid by the end user (read: person in the street) and already Europe’s highest?
Wait! We can always borrow – at 8.93 percent – also Europe’s highest https://tradingeconomics.com/hungary/government-bond-yield
Pharmaceutical costs – still witnessing outrageous INCREASE in Hungary.
WHO is having there “Palm” greased, by this Greed, Selfishness and Exploitation?
The GOUGING of the pockets of millions of Hungarians, especially in the ESCALATION of price for over the counter MEDICATION is APPALLING.
WHO is opening there MOUTHS from a Political OPPOSITION position or ‘other” – not making a MAJOR issue of the BLATANT act of EXPLOTATION?
HOW millions of Hungarians from “All Stations in Life” in towns, villages and city’s – that need or visit a Pharmacy either on a regular basics or occasionally, just sitting back, handing over our forints and not noticing the GOUGING – massive increase of Pharmaceutical costs – Mindboggling.
Don’t use as a DEFENCE whoever wishes to try and JUSTIFY the Pharmaceutical “Bleed” on Hungarians that continues on, or that – its through Inflation, as that’s absolutely a cop out out – FALSE.
WHO is taking up the BATON – representing the millions of battling financially strickened Hungarians – who are getting EXPLOITED?
Who- is the VOICE of the PEOPLE?