Hungary will order banks, insurers, airlines and other large corporations to transfer “excess profits” for military funding
Hungary wants to finance military and social security programs by imposing taxes on banks, insurance companies, airlines, energy and telecom utilities and others, Prime Minister Victor Urban announced on Wednesday.
This is his first step under the state of emergency, which Budapest has just enacted, referring to the conflict in neighboring Ukraine.
“We ask and we hope that those who have gained extra during this time of war will help the people and contribute to the national defense budget.” Urban said this in a video posted on Facebook.
In a follow-up post, Urban says that one “Rising prices” Was due to ongoing clashes and “Sanctions policy in Brussels,” When “Banks and large multinational companies” Extra profits are cut thanks to rising interest rates.
To finance the military and social security networks, the Hungarian government has set up two funds, and will “Banks, insurers, major trade chains, energy and retail companies, telecommunications companies and airlines have to contribute a large portion of their surplus profits.” There
The measures will be effective for the rest of 2022 and 2023, Urban added.
Budapest declared a state of emergency on Tuesday, hours after Urban’s new cabinet was sworn in. Hungary’s parliament quickly approves a constitutional amendment to declare a state of emergency in a neighboring country – in this case, Ukraine.
Orban’s surplus profit tax mainly affects multinational companies. According to Bloomberg News, the EU sanctions will help push Budapest’s budget further. Brussels suspended funding against the Urban government after its landslide victory in last month’s election, citing “The rule of law is worrisome.”
The EU administration passed rules suspending funding to pressure the Hungarian and Polish governments to adhere to the Brussels policy on immigration, the judiciary, the LGBT issue and Budapest and Warsaw dissent.