Hungarian business concerns over taxation

Hungarian businesses have expressed growing concern regarding taxation. A survey by K&H Bank indicated that 43% of larger market players anticipate an increase in tax and contribution burdens, while the number of decision-makers expecting a tax decrease has fallen to 11%.

Adding to these concerns, thirteen professional organizations, including the Hungarian Advertising Association (MRSZ), have warned against the proposed reintroduction of a 3.75% advertising tax. These groups argue the levy could threaten the sustainability of domestic content providers by taxing revenue even if companies operate at a loss. They also noted a potential competitive disadvantage regarding global tech giants and have requested a detailed economic impact assessment from the government.

The Hungarian Ministry of Finance has formally proposed the 3.75% advertising tax as part of a broader fiscal plan by the Tisza government. This plan aims to generate 929 billion forints through various measures intended to promote fair taxation, environmental protection, and healthcare funding. The advertising tax, alongside proposed retail and insurance taxes, is estimated to contribute approximately 54 billion forints to the budget. Industry representatives have reiterated that while the current advertising tax rate is 0 percent, domestic companies are already subject to standard corporate, local, and VAT taxes.