General

Hungarian Prime Minister Viktor Orbán used emergency powers on June 5 to announce a package of "windfall profits tax" decrees and ordered to cut spending by about $6.1 billion this year and next. The Austrian News Agency reported on the same day that due to the Russian-Ukrainian conflict, the EU sanctions policy and the resulting inflation, the Hungarian government announced at the end of May that it plans to impose special taxes on companies that generate "excess profits" in certain fields, mainly involving banks and insurance companies. , as well as energy companies, retail chains, telecommunications companies, pharmaceutical companies, and the advertising industry are also affected.

The special tax is scheduled to be levied this year and next, the report said. Specifically, banks will pay 10% net income tax and other taxes in two instalments over two years; oil companies pay 25% tax; airlines must pay about 10 euros per passenger for departure fees, etc. Orban hopes the move will generate an "excess profit tax" of 800 billion forints (about 14.5 billion yuan) to curb inflation and fund defense spending.

In Europe, Italy is one of the pioneers of the "excess profits tax", which in March passed a tax on the extra profits of energy companies, according to German TV station. It is estimated that Italy will therefore receive about 6.5 billion euros in tax revenue. The UK is also planning such a tax.