The Austrian parent company of supermarket chain Spar has urged the European Commission to intervene, accusing Hungary of systematically discriminating against foreign retailers despite hopes of a fresh start under the new government.
Spar’s Austrian parent company has renewed its call for the European Commission to take action against Hungary over the retail sector’s special tax, which the government has no plans to abolish. The company’s leadership has expressed disappointment with the new administration, arguing that recent changes have failed to address what it sees as unfair treatment of foreign supermarket chains.
According to Austrian newspaper Die Presse, Hans Reisch, head of Spar’s Austrian parent company, has written to the European Commission again, urging it to intervene in the dispute. He reportedly described the government’s retail policy changes so far as a smokescreen and said he had little confidence that the sector-specific tax would be scrapped any time soon.
Spar calls for EU infringement proceedings
Reisch claims that foreign retail chains continue to face systematic discrimination in Hungary and argues that the government is unwilling to establish a level playing field for domestic and international businesses.
The company believes the European Commission should therefore launch infringement proceedings against Hungary over its retail taxation policy.
The dispute centres on the special retail tax, which will remain in place under the government’s plans for the 2027 budget. The highest tax band, applying to the portion of the tax base exceeding HUF 50 billion (approximately €125 million), will continue to carry a rate of 4.5%.
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‘Euphoria about the Magyar government proved unfounded’
Peter Manhartsberger, a director at Spar’s Austrian parent company, voiced his frustration in an interview with Die Presse.
“Unfortunately, the euphoria surrounding the Magyar government proved unfounded,” he said.
Manhartsberger also pointed to the government’s plans to abolish the mandatory retail margin cap while retaining the special tax. In his view, the tax represents a considerably greater financial burden for the company.
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Dispute costs Spar €130 million a year
According to Manhartsberger, the two measures together cost Spar around €130 million annually. Of this amount, approximately €90 million is attributable to the special retail tax, while the margin cap accounts for a further €40 million.
The figures illustrate the scale of the financial dispute between the supermarket group and the Hungarian government. With the special tax set to remain in place in 2027, Spar’s Austrian parent company is once again turning to Brussels in an effort to secure a change in policy.
