A government decree published on Saturday evening specifies the amount of the surcharge for the different sectors in Hungary. The fifth Orbán administration had previously announced that it wanted large corporations to pay a tax based on their “extra profit”. Among other things, there will be an additional tax on airline tickets, the tax on company cars will double, and we will have to pay after each Revolut-like transfer. Here are the details!
New tax on every plane ticket
According hvg.hu, the government issued its relevant decree after their three-day session in Sopron. The government calls the additional airline ticket tax the airliner contribution. In this case, there will be two tariffs. If the flight destination is EU, UK, Northern Ireland, Albania, Andorra, Bosnia and Herzegovina, North Macedonia, Iceland, Kosovo, Liechtenstein, Moldova, Monaco, Montenegro, Norway, San Marino, Switzerland, Serbia or Ukraine,
the additional tax rate will be 3,900 HUF (€10.18) per passenger. Otherwise, it is 9,750 HUF (€24.88).
The surcharge only applies to passengers departing from Hungary. Consequently, the decree does not apply to passengers in transit.
Theoretically, the subjects of the new tax are ground handling companies, not passengers. However, companies may include the additional tax in the ticket price.
For example, Wizz Air has already announced that it may increase its prices due to the additional government tax.
Increase in taxes in all sectors
Based on the government decree, the transaction fee on securities transactions will be 0.3%. The maximum will be 10,000 HUF (€25.52). We will have to pay this when we buy the securities. The only exceptions will be investments offered by the Hungarian State Treasury and the Hungarian Post. Interestingly, companies providing cross-border financial services will also have to pay the transaction fee like Revolut or Wise. It will be 0.3% per transaction, while its maximum will be 10,000 HUF. Before, the maximum was 6,000 HUF (€15.31).
The additional tax on banks will be 10% in 2022 and 8% in 2023. The tax base will be the net income of the previous year. Insurers will have to pay a progressive additional tax of between 2 and 14% in 2022 and 1 to 7% in 2023.
Pharmaceutical companies, excluding small pharmacies, will have to pay an additional 20% tax after drugs below 10,000 HUF (€25.52) and 28% after drugs above this threshold. The basis of the tax will be the producer price or the import price.
Telecom operators will pay after their net income. It will be 0% below 1 billion HUF (2.5 million euros), 1% between 1 and 50 billion HUF (2.5 to 127.5 million euros), and 3% between 50 and 100 billion HUF (€127.5-244.1 million). The highest tax rate will be for companies with more than HUF 100 billion in revenue: 7%.
We will have to pay more for tobacco products and alcohol in Hungary
In addition, retailers and companies in the energy sector will also have to pay additional tax after their income.
Excise duties on tobacco products and alcohol, as well as the tax on public health products on energy drinks, flavored beers, salty snacks will also increase.
In addition, the tax on company vehicles will double.
Like us reported previously, the government aimed to raise 300 billion forints annually (€765.4 million) of the banking sector, including 50 billion by expanding transaction rights, said Márton Nagy, Minister of Economic Development, after the April 3 elections. A total of 50 billion forints will be collected from insurers and 300 billion from companies in the energy sector, much of it from the Hungarian oil and gas company MOL, the minister said. The government will collect 60 billion forints from retailers, 40 billion from telecom operators, 30 billion from airlines and 20 billion forints from pharmaceutical companies, not counting small pharmacies, he added.
Nagy told Kossuth Rádió today that the new tax on banks, energy and trading companies and airlines, among others, would be temporary and targeted.