The Hungarian government decided last week to modify the windfall taxes imposed on some key sectors in 2022 and 2023. The decree includes new extra profit tax rules for 2024 (the extra burden was introduced originally for two years), increasing the burden further on large retailers while cutting the extraordinary tax payable by drug producers.
- The extra profit tax to be paid by the retail sector in 2024 will be increased to 4.5% from 4.1% on revenues above HUF 100 billion (approx. EUR 270,270 million).
- The windfall tax imposed on pharmaceutical producers will fall to 4% next year from 8% on net revenues of more than 150 billion HUF (approx. EUR 405,400 million). On the other hand, pharmaceutical companies’ payments to state coffers after their sales of more expensive state-subsidised drugs will increase next year: the repayment/tax rate for medicines with a producer price of more than HUF 10,000 will rise to 40% from 28%.
- The government also imposed a new “social tax” of 13% on certain types of investments, such as investment notes and interest rate gains on bank deposits.