Hungary: "Extra profit tax" puts burden on grocery trade
The government's new "tax on extra profit" is expected to double the tax burden on grocery trade.
We reported last week that the government of Hungary has decided to increase the taxes of certain selected sectors in the economy, calling the measure a “tax on extra profits”.
The news portal TradeMagazin.hu reported this week, based on calculations done by the business portal Blokkk.hu that compared to the government’s income from grocery trade corporate taxes will double this year compared to the 2021 figure of €202.5 million due to the increased taxing of the sector. The same calculations predict a gross annual tax income of €481.2 million from the sector in 2023.
The portal also reports that in 2021, profits in the sector declined because even with rising prices, businesses in the sector had even higher cost increases – And that with the increased tax burden, consumer prices are expected to rise even further.
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