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Hungary to collect about two billion euros in surplus imposed on companies on “surplus profit”

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This new tax, which was announced on Wednesday by populist Prime Minister Viktor Orban, will be aimed atMainly the banking and energy sectorsaccording to Agerpres.

The government hopes to collect 300 billion forints (760 million euros) from each of these two sectors, for a total of 600 billion forints (over 1.5 billion euros), said Minister of Economic Development Marton Nagy , during a press conference.

Taxation of retail chains, insurance companies, airlines, telecommunications and pharmaceutical groups will bring in another 200 billion forints (about 500 million euros), he added.

“It’s not about profiting from profits, it’s about profit surplus,” Nagy said.

An advertising revenue tax will also be introduced, which should bring the budget to 15 billion forints (38 million euros), the Hungarian minister added.

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These new taxes, which exceed a total of 800 billion forints (2 billion euros), will be applied in 2022 and 2023, the minister said, refusing to say whether they could be extended later.

In a video posted on Facebook on Wednesday, Prime Minister Orban explained that the money obtained from this new tax will be used in two directions: strengthening the army and capping energy and water prices.

The war and “Brussels’ sanctions policy” against Russia have led to “price increases” which, along with rising interest rates, “bring additional profits to banks and multinationals,” the Hungarian prime minister justified the decision.

The announcement comes a few days after a second state of emergency was triggered by the war sparked by the Russian invasion of Ukraine, while the first, related to the COVID-19 epidemic, is due to expire next Tuesday.

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Companies that make extra profits should help Hungary’s economy and contribute to the country’s defense spending, whether it’s reducing household bills or financing national defense, Prime Minister Gergely Gulya’s chief of staff said on Thursday.

At the same time, the Hungarian government also announced on Thursday that only cars registered in Hungary will be able to refuel at gas stations where prices have been capped since November (around 1.2 euros per liter) in order to discourage “tank tourism”. with foreign registration numbers will have to pay the market price, Gulyas said.

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