Hungarian businesses express concern over rising tax burdens

A recent survey by K&H Bank regarding the confidence index of small and medium-sized enterprises in Hungary reveals growing concerns over rising tax burdens. While the percentage of companies expecting an increase in taxes fell by 17 percentage points in the previous quarter—dropping from peaks of 50-60% to 34%—the figure has since corrected upward to 43% for the third quarter.

There is a notable divide in sentiment based on company size. Only the smallest enterprises remain optimistic, whereas 43% of larger market players anticipate an increase in tax and contribution burdens in the near future. Furthermore, the group of decision-makers expecting a decrease in taxes has shrunk by 8 percentage points, leaving only 11% who foresee such a scenario.

Regarding the impact of taxation on business performance, opinions remain divided. Only 12% of respondents believe that changes in taxes and contributions could provide a positive boost to their companies, a decrease from 21% in the previous quarter. Meanwhile, 41% of respondents believe that the evolution of public burdens does not have a significant impact on their operations, a figure that aligns with the 40% who expect no change in conditions over the next 12 months.