Hungary government unveils tax overhaul, scrapping five taxes

On 17 July 2026 the Tisza‑led Hungarian cabinet announced a comprehensive tax reform. Prime Minister Magyar Péter said five tax items will be eliminated: a municipal‑level local tax, the e‑badge (eb) tax, the immigration surcharge, the carbon‑dioxide quota tax and its associated transaction fee. The government will also end preferential tax breaks for the so‑called “kekvá” trust foundations, remove heritage‑project tax benefits and tighten rules on asset‑management trusts.

The reform doubles the air‑pollution charge for polluting companies and introduces stricter environmental conditions for large water users and other polluters. Finance Minister Kármán András explained that the changes will broaden corporate tax bases, cut unnecessary exemptions and close loopholes that had favoured wealthy individuals under the previous administration. The stated aim is a simpler, more transparent and fairer tax system that also improves Hungary’s compliance with EU rules and access to EU funding.