Coronavirus: PM Orbán Announced Five-Point Economic Protection Plan

  • 7 Apr 2020 7:42 AM
  • Hungary Matters
Coronavirus: PM Orbán Announced Five-Point Economic Protection Plan
After the European debt crisis and the migrant crisis, Hungary is now facing a virus crisis. The new economy protection action plan does not increase the country's exposure; it aims to solve Hungary's problem on its own.

The most important measures announced on 7 April are as follows:

  • They are releasing 75,000 persons currently working in jobs requiring secondary qualifications because of the absence of language certificates from the obligation of taking foreign language examinations. This exemption applies to all students who will have successfully completed their higher education studies by 31 August 2020.

  • For the duration of the suspension of work, the state agrees to pay 70 per cent of wages for a period of 3 months; however, the government would like employees to do useful jobs in the interest of their employers also during this period.

  • There is a 40 per cent wage support available for 3 months in relation to persons in research and development jobs.

  • Administrative burdens and taxes are being reduced.

  • With a view to facilitating communication between economic actors and the government, a business information portal has been set up at the website address

  • From July they are reducing the social contribution tax by 2 per cent.

  • The deadline for the submission of tax returns has been postponed to 30 September.

  • In the Electronic Trade and Transport Control System, they are introducing exemption from the provision of security.

  • They are accelerating VAT refunds; reducing the time limit in the case of normal taxpayers from 75 days to 30 days, while in the case of reliable taxpayers from 30 days to 20 days.

  • Special payment facilities, payment by instalments, deferred payment and tax reduction options are being introduced, while forms are being simplified.

  • Due to any omission occurring during the state of danger, taxpayers cannot sustain any disadvantage in that capacity.

  • The documents of sick leave can also be submitted in electronic copies.

  • The social insurance of workers sent on unpaid leave will not be terminated.

  • Calls for proposals with an allocation of hundreds of billions of forints will be released for companies retaining their work force for the purposes of technological developments, environmental protection and energy efficiency projects.

  • In response to company shutdowns, online training will be organised for workers.

  • The state agrees to cover 95 per cent of training fees, while job-seekers are entitled to interest-free adult training student loans.

  • University students will be able to apply for a one-time, any-purpose, interest-free student loan of the amount of HUF 500,000.

  • Sectors most affected by the virus and industries with extensive traditions in Hungary can expect extra funding. Accordingly, the construction industry, transport, logistics, tourism, the creative industry, the health industry and the food industry will have access to development grants and tax cuts, in addition to the availability of preferential loans and capital programmes.

  • In order to support tourism, the government is suspending the tourism tax up to the end of the year. The social contribution tax on SZÉP cards (recreational benefits) is being reduced to 4 per cent up to the end of June, and the applicable limit will also increase. Refurbishment and development programmes will likewise be available in this field.

  • The health industry will receive more significant support than ever before so that the products of Hungarian pharmaceutical companies and medical supplies manufacturers appear in Hungarian health care in a higher percentage. Both university and corporate research institutes will receive funding; an Agency for Health Industry Innovation is being set up.

  • In the interest of protecting employers, credit guarantee and capital programmes have been announced to boost corporate liquidity. These grants could protect Hungarian-owned businesses not only from economic decline, but equally from foreign buy-outs. Corporate credit facilities offered at preferential interest rates amount to almost HUF 2,000 billion in total, with state guarantees to the value of HUF 500 billion.

  • The deadlines attached to the home care fees of children will be extended, as will be the eligibility of parents raising children with permanent illnesses for higher family allowances.

  • Instead of the end of the school year, this year’s eligibility for family allowance will be adjusted to the end of the state of danger.

  • The rules and deadlines relating to pensions and pension-like benefits will also change favourably.

MTI Photo: Zoltán Fischer


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