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Hungarian government to remove special taxes in 2024
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The government is planning to remove the “extra tax burdens” on the banking sector, the finance minister told an annual meeting of the Hungarian Banking Association on Friday.
Mihály Varga praised Hungary’s banks as “performing well in a worsening international environment”. The economy could not operate without a suitable banking sector, while banks could not be profitable without a well-performing economy, either, he added. Hungary’s high employment rate indicates that the economy could stand the test of war times, he said, adding that the goal was to maintain the economy’s activity in future.
Concerning banking, he said that the sector’s capital adequacy ratio was twice as high as the required minimum, while the loan/deposit ratio was also better than the European Union average.
The government has considered the windfall profit tax as a temporary measure and will remove it as earlier pledged. He added, however, that “full consolidation” of the economy still required bank financing. He also asked banks for their partnership in working out a solution for phasing out the special taxes.