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SPAR vs Orbán war continues: Austrian CEO wants infringement procedure against Hungary
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SPAR remains incensed by the Hungarian government’s introduction of an additional retail tax—often referred to as an “excess profit” tax—following the fourth consecutive landslide victory of Prime Minister Viktor Orbán and his co-ruling Fidesz and KDNP coalition in 2022. SPAR is urging the European Commission to initiate another infringement procedure against Hungary and has emphasised that the company will undertake improvements if the government removes this additional financial burden.
SPAR presses for an infringement procedure against Hungary
We have reported on several occasions that the Hungarian state budget is grappling with serious financial challenges due to reduced consumer spending in the aftermath of COVID-19, the war in Ukraine, and the inflation crisis. In response, the government introduced several extra taxes, including what they term the “excess profit tax”. In theory, retail chains are required to pay an additional 4.5% tax, but in practice, this cost is often passed on to consumers. According to the supermarket franchise, this results in a EUR 90 million shortfall each year, preventing them from initiating development projects in Hungary, even though the market urgently requires investments in logistics.
As reported by economx.hu, the retail chain continues to lobby the European Commission. The company is pushing for the Commission in Brussels to initiate another infringement procedure against Hungary over the excess profit tax. This information was reported on Friday by Lebensmittel Zeitung, a German publication specialising in the food market. SPAR has stated that if the government were to abolish this additional tax, the company would begin investing in Hungary, which is their largest foreign market.
SPAR’s CEO, Hans Reisch, has indicated that the company faces significant logistical challenges in Hungary, necessitating investment to remain competitive. However, their revenues are currently in the negative, largely due to government-imposed food price caps and the additional tax. We previously reported that SPAR restructured its operations in Hungary to shield itself from business circles close to Orbán. Property and building management, as well as retail and logistics rights, have been transferred from their Hungarian subsidiary to their Swiss company. Additionally, their supermarket operations have been attached to their Austrian company, allowing them to save EUR 10 million per year.
“due to reduced consumer spending” – it’s because Hungarians do their shopping in neighbour countries. If you go to Kaufland in Slovakia you think you are in Hungary, most shoppers are Hungarians. Keep the affa at 27% and get nothing!
Pressurization on the name – Victor Mihaly. Orban is near a place of gargantuan proportion.
Orban, has for time, been CORNERED – from ALL sides, by country’s that are DEMOCRACY.
The Russian War – has “un-dressed him” exposed his undergarments, his “veiling” of his CREED – that continues to “serve” as his ultimate DEMISE.
The nature of the individual, the self belief in his persona that he is Indestructible, in “vainness” – believing of his immortality, the – ALL sides- of what is a “Bear Pit” – that we know, through history – the GASHLY “finished” results / picture, the individual Victor Mihaly. Orban – that he has continued to “feed into” – through, and in the conduct of his rhetorical Political image / style, that “exhumes” he is an Antagonist.
Victor Mihaly. Orban is an Adversary.
It can’t be dismissed that over years, as Orban has “Forged” on, in his dictatorial style of Prime Ministership, that he has EXHIBITED the fanatical acceptance of his Political Ideas and Philosophy – Ideology – that is a Dogma, and that ALL, likened to LEMMINGS – his Government – Politicians and SUPPORTERS of Fidesz – all have “taken a Bite” – chewed and FEED off, that is Rabid.
Damage – the “zenith” of on-going, this Victor Mihaly. Orban – administers on Hungary – WORSENS.
If SPAR does not want to play, SPAR can leave Hungary.
As Mr. Lázár says – obey the Government!
https://miniszterelnok.hu/en/speech-by-prime-minister-viktor-orban-at-the-33rd-balvanyos-summer-free-university-and-student-camp/
Chilling stuff.
At least this time they didn’t “threaten” to leave Hungary, like they did a dozen times in the past two years alone…
Our country, our rules. Hungary does not bend to the diktats of globalist corporations.
Don’t like it, you know where the door is.
SPAR, GTFO of Hungary. You parasites have sucked enough Magyar blood.