Hungarian Prime Minister Viktor Orban signs decree on raised windfall tax on lenders, which he says will help create 860b forint ($2.6b) in fiscal reappropriation room within the next year’s election budget.
- Banks must pay 10% of pre-tax profit for share under HUF20b, up from initial 8% plan for 2026, and 30% for share above HUF20b, compared with 20% seen earlier
- Decree also tightens banks’ ability to use government bond purchases to lower tax burden
- The deductible amount drops to 30% from 50% of the windfall tax
- NOTE from Nov. 11:
Orban to Loosen Budget, Squeeze Banks for Election Spending ...