[REVISION HISTORY]
Hungary tax reforms 2026
Updated 1 time since CLSTR started tracking revisions of this situation.
What changed
2026-07-31 05:45 UTC → 2026-07-31 06:17 UTC ·
added
removed
In late July 2026 the Hungarian government rolled out introduced a series of fiscal measures aimed at easing household costs and reducing business tax burdens. On 28 July, July Prime Minister Magyar Péter announced a steep cut to the value‑added tax on firewood, lowering the rate from 27 % to 5 %. The change reduction targets roughly 1.5 million low‑income households that rely on firewood for heating and have been excluded from earlier energy‑subsidy programmes. The reduced rate will apply be applied automatically at the point of sale from the autumn heating season. Finance Minister Kármán András estimated an average annual saving of about 24 000 HUF per family, while the state foregoes roughly 15 billion HUF in revenue. Three days later, on 31 July, Hungary introduced a broader tax‑reform package. package was unveiled. The carbon‑quota tax was abolished, with the tax authority offering refunds – plus interest – to firms that claim within 90 days. Retail retail tax rules were relaxed, customs procedures were streamlined through electronic declarations and automated decisions, declarations, and several ancillary taxes (immigration surcharge, municipal tax, beverage contribution) are slated for removal in January 2027. Together, these steps reflect The reforms also formalised the elimination of the 5 % VAT on prescription medicines, a measure that took effect on 1 September 2024. The zero‑rate is projected to cut drug prices by about 4.8 % (roughly 56 forint per box). Fidesz MP Takács Péter criticised the step as modest and insufficient relative to earlier campaign pledges. Overall, the package reflects a shift toward targeted relief for vulnerable consumers and a simplification of the tax and customs regime for businesses.
Versions
Only revisions since CLSTR began indexing content versions appear here. Select a version to see what changed compared to the one before it.