Opposition Parties Comment on Windfall Taxes in Hungary

  • 27 May 2022 8:38 AM
  • Hungary Matters
Opposition Parties Comment on Windfall Taxes in Hungary
Parties of the opposition have criticised the government for its Wednesday decision to make certain large companies pay a part of their extra profits to a new public utility cut fund and a defence fund.

The Democratic Coalition said the government was seeking to make residents pay for its “ill-advised policies and reckless corruption”. In a statement, the party said it was “obvious” that energy and telecommunications companies, banks and airlines would raise revenues to pay a new tax through raising their prices.

“PM Orbán’s new taxes will be paid by the Hungarian people,” it said.

Radical Mi Hazánk (Our Homeland) said the government had implemented Mi Hazánk’s earlier proposal, but “it will not impose a tax on its own oligarchs”. During the coronavirus pandemic, Mi Hazánk demanded a supertax to be levied on large international companies such as tech firms, large chains, pharmaceuticals and casinos.

The government, however, has “opted to indebt the next generations through amassing the state debt rather than levying a tax on multinationals”, the party said. Pharmaceuticals and casinos “associated with the oligarchs of (ruling) Fidesz” have been left unaffected by the new measure, they said.

LMP said it supported that companies with extra profits should take a larger part of the public burden. It said, however, that a third fund should also have been established and financed by companies making profits on polluting and fossil fuels. This fund could be used to finance insulation projects and renewable energy developments, the party said. Conservative Jobbik said in time of crisis “everybody should bear the public burden”.

“The problem is that the government allowed an opportunity for banks to transfer the costs of a special banking tax and transaction duty to customers”, Jobbik’s deputy leader Dániel Z. Kárpát said on Facebook, adding that the new measures should not impose new burdens on families.

Fidesz “expects traders to pay a contribution but it will not reach into its own pockets by, for example, eliminating the VAT on basic food products,” he added.

Socialist Party co-leader Bertalan Tóth said on Facebook that “oligarchs” associated with the ruling parties should not be exempted from the new windfall taxes.

According to the Socialists, the new taxes should also be used to reduce taxes on wages while the VAT on basic foods should be reduced to 5% and the poorest should be given food tickets.

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this newsletter published on week days covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI.

Explore More Reports

  • Hungary 'Never Proud to be an Outlier in EU'', Say PM's Chief of Staff

    Hungary 'Never Proud to be an Outlier in EU'', Say PM's Chief of Staff

    • 28 Jun 2022 9:34 AM

    Hungary's government aims to find allies and is never proud to be an outlier in "regrettable" debates in the European Union, the prime minister's chief of staff said. But sometimes combatting Brussels necessary to thwart decisions that don’t take Hungary’s interests into consideration, Gergely Gulyás said in an interview with public media website hirado.hu.

  • Voters in Hungary Support Windfall Taxes, Századvég Survey Finds

    Voters in Hungary Support Windfall Taxes, Századvég Survey Finds

    • 27 May 2022 8:35 AM

    Fully 79% of respondents in a recent Századvég survey expressed support for the government’s decision to levy a supertax on companies making extra profits to finance the government’s public utility cuts programme, the pollster said in Thursday.

  • New Windfall Tax on "Extra Profits" Announced in Hungary

    New Windfall Tax on "Extra Profits" Announced in Hungary

    • 26 May 2022 8:51 AM

    Hungary's government will require banks, insurers, retail chains, energy companies, telcos and airlines to contribute their "extra profits" to a utilities fund and a defence fund for a period of two years, Prime Minister Viktor Orbán said in a video message on Facebook on Wednesday.