For a sole trader in Erzsébetváros, the reopening of KATA is probably the most directly relevant news of Friday's announcements. Under the planned rules, invoicing companies would be allowed again from 2027, and people with a side business could also choose this tax scheme, Portfolio reported on October 9.
Monthly tax rates would increase, while the base for social security benefits would triple. The source does not specify any concrete monthly amounts, so for now, only the general direction of the system is clear.
## A tax on wealth over one billion
The other major change would affect a much smaller group. The new wealth tax would be levied on private assets worth more than one billion forints, with no retroactive effect. State Secretary Attila Kövesdy estimates that 15,000 to 25,000 taxpayers would be affected, and the government expects this tax to generate approximately 200 billion forints in revenue annually.
Finance Minister András Kármán argued that the tax burden on consumption in Hungary is high, while that on wealth is low. According to his statement, the wealth of the 100 richest Hungarians increased by 325 percent over the past ten years, while that of average households rose by 170 percent.
The National Association of Entrepreneurs and Employers does not support the current version of the draft. The advocacy group is calling for the protection of productive capital, lower tax rates, and a phased implementation.
In addition to the wealth tax, a so-called exit tax would also be introduced. For assets valued above 500 million forints, moving abroad would be treated as a deemed sale, and the unrealized gain would be subject to a 15 percent personal income tax. Those moving within the European Union could receive a ten-year deferral, while for those leaving for the United States, the tax could become due immediately.
## Government bonds would stay tax-free
An important announcement for savers is that, according to Prime Minister Péter Magyar, the government has no plans to eliminate the tax exemption on retail government securities. The European Commission had previously launched an infringement procedure against Hungary, arguing that this tax benefit could violate the principle of the free movement of capital.
Until December 31, carriers can claim a refund of 25 forints per liter in excise tax on diesel fuel. This relief applies specifically to this sector.
## The Olympic plan was also on the agenda
Among the government matters discussed on Friday were the plans for the Budapest Olympics and the issue of highway concessions. Portfolio’s summary did not cite any specific decisions regarding these matters.
Meanwhile, István Kapitány, Minister of Economy and Energy, announced that he would file a criminal complaint over a 166-billion-forint EXIM investment on suspicion of breach of trust, negligent mismanagement and abuse of office. Based on the complaint, the National Bureau of Investigation may investigate; criminal liability can only be established by the competent authorities and the courts.
Source: Portfolio
