SPAR has filed a new complaint with the European Commission over Hungary’s special retail tax, arguing that recent changes to the rules do little to help large supermarket chains. The move comes despite Prime Minister Péter Magyar asking for patience while his government works to stabilise the country’s finances.

SPAR has lodged another complaint with the European Commission over Hungary’s special retail tax, claiming that the levy continues to disadvantage foreign-owned supermarket chains and that a recent amendment intended to ease the burden is effectively unusable for large retailers.

According to Hungarian News Agency MTI, which cited a company statement, the Austrian supermarket group submitted its latest complaint after taking a similar step in 2024. Peter Manhartsberger, a senior SPAR executive, described the rules as “absurd” and deliberately obstructive, arguing that they could force companies to change their corporate structures.

Why SPAR says the changes do not work

SPAR argues that the Tisza government has retained the special tax introduced by the previous administration, making only changes that allow large wholesalers to operate through several smaller companies and potentially pay less or no retail tax.

However, according to Telex, Manhartsberger told Austrian news agency APA that SPAR Hungary, which operates hundreds of stores across the country, cannot realistically be divided into hundreds of separate companies.

He also argued that forcing businesses to restructure to benefit from the tax rules conflicts with EU law. SPAR’s complaint reportedly points to anti-tax-avoidance provisions that could prevent the authorities from recognising corporate reorganisations carried out primarily for tax purposes.

The company therefore believes the amendment offers little practical relief to a large retail chain operating through a single Hungarian subsidiary.

spar retail chain shopping european commission
Photo: Daily News Hungary

How much is the Hungarian tax costing SPAR?

The dispute comes against the backdrop of substantial financial losses reported by SPAR Hungary.

According to figures cited by Forbes, the Hungarian subsidiary generated net revenue of HUF 983 billion (approximately EUR 2.7 billion) in 2025. Although it reduced its losses by more than HUF 3 billion compared with the previous year, it still ended the year with a deficit of around HUF 21 billion.

SPAR has also highlighted the cost of Hungary’s retail tax and price margin restrictions. Its chief executive, Hans K. Reisch, said in an interview that the company paid EUR 85 million in special retail tax in 2025, while the price margin cap cost it a further EUR 37 million.

The company has repeatedly argued that the combined burden makes profitable operations in Hungary difficult. In 2024, SPAR and Austria also complained to the European Commission, claiming that the measures were incompatible with EU law and had increased the company’s costs by EUR 90 million. SPAR previously reported a loss of almost EUR 50 million for 2023.

EU legal action adds to the pressure

The European Commission has already taken Hungary to the Court of Justice of the European Union over the special retail tax and the price margin restrictions, bringing the dispute beyond SPAR’s own complaint.

The supermarket group has repeatedly called for EU intervention, with support from Austrian political figures. Its latest submission signals that the company remains dissatisfied with the changes introduced by the Hungarian authorities.

Péter Magyar asked for patience over special taxes

Prime Minister Péter Magyar has previously indicated that his government wants to reform the tax system and provide Hungarian and foreign investors with equal opportunities.

During a visit to Austria following his appointment as prime minister, Magyar acknowledged that the state budget was in a difficult position and asked businesses to be patient while the government worked to stabilise public finances.

Finance Minister András Kármán had also pledged during the election campaign to reduce the tax burden.

hungary andrás kármán finance minister magyar government budget
Finance Minister András Kármán. Photo: Facebook/Kármán András