Hungary adjusts the fuel excise tax to the EU minimum level. This also depends on the price of crude oil on the world market: below 50 dollars per barrel, the excise tax on gasoline will be HUF 157.55 per liter instead of HUF 125, and above that, it will rise from HUF 120 to HUF 152.55. In the case of diesel, the excise tax rises from HUF 120.35 to HUF 152.9 below the oil price of USD 50, and from HUF 110.35 to HUF 142.9 above.
The announcement of the Ministry of Finance argues that the government is doing this under pressure from Brussels, and that is why the tax increase was so large. The data does not support this in all respects, we wrote about it here:
The tax rules created at the decree level during the state of emergency legislation were included in the law: thus, the previous provisions on extra profit taxes, the tax exemption for mothers under 30, the rules for the increased family discount for those raising a chronically ill or severely disabled child, as well as the amendment of the tax rules related to the termination of the sub-accounts of the Széchenyi Pihenő Card too.
The contribution of the airlines and the tax-free reimbursement of commuting to work will be raised to HUF 30, and the daily rates for simplified employment will be fixed. The PM notes here: in the case of airlines, fuels are not subject to excise tax, so the level of public transport in aviation is extremely low. “That’s why – similarly to the other EU countries – the contribution of the airlines will remain as a green tax in Hungary, while at the same time providing a discount to less polluting aircraft,” the ministry wrote.
The range of cars exempt from motor vehicle tax is expanding: similarly to associations and foundations, there is no need to pay for a motor vehicle owned by public bodies, provided that the public body was not liable to pay corporate tax in the year preceding the current year. Instead of twice a year, you will have to pay vehicle tax once, and those who cannot do this can request five installment payments.
In the case of the simplified public burden contribution (ekho), the proposal raises the measure to the level of law, according to which the payer is not obliged to pay the simplified public burden contribution. This has already appeared as a discount.
The VAT rate for daily newspapers – publications published at least four times a week – will be reduced to zero percent. According to the justification, this was adopted at the initiative of the Association of Hungarian Newspaper Publishers, its purpose is to “support everyone’s access to diverse information, cultural consumption, broad mass media and encourage media pluralism”.
Reorganization and downsizing rules within the National Tax and Customs Administration are changing: in the future, the consent of the person concerned will not be required to change the content of the appointment in the event of reorganization or downsizing, nor if the employee is transferred to another body of the NAV. In the case of NAV officials, the place of work can only be changed within the area of the settlement, while in the case of a tax inspector, the job title can be changed without changing the status.
With the adoption of an over-extensive amendment, the law on metal trade was also amended in this legislation, which was necessary in connection with the transition to the concession system of waste management. The categories of concessionary metal dealer, concessionary metal trade license and concessionary metal trade activity are introduced as new concepts. Metal dealers have until July 20 to submit their application for a concessionary metal trade license.
We previously wrote about the details of the tax package here.
Cover image: Representatives vote at the extraordinary plenary session of the Parliament on July 3, 2023. Source: MTI/Zoltán Balogh