The Hungarian government is trying to control massive inflation with its first decrees after the re-declaration of the state of emergency. Prime Minister Viktor Orban announced on Wednesday the introduction of special taxes on the profits of banks, insurance companies and other large companies.
Much of the profits from the years 2022 and 2023 should flow into two newly established funds. These are intended to fund national defense and the government to keep energy prices low for consumers. The right-wing conservative Orban government has supported energy costs for small consumers since 2013, and in recent months officially capped prices for fuel and certain basic foodstuffs have been added.
“It’s getting harder and harder to protect families”
“The war in Ukraine drags on. Brussels’ sanctions policy is not getting any better. All this leads to drastic price increases,” said the prime minister, who was re-elected a few weeks ago, describing the far from rosy situation. It would therefore become “more and more difficult and expensive to protect families,” Orban said in a video message on his Facebook page. But more needs to be invested in national defence.
On the other hand, numerous banks, insurance companies and large corporations would generate huge profits from the price and interest rate hikes. These must now also contribute to the words of the head of government and help the people. According to the government, the special taxes are limited to two years.
Orban wants to keep his country out of the war
Hungary intervenes in the sixth EU sanctions package against Russia, mainly because of a planned embargo on Russian oil imports. Budapest is demanding billions in subsidies as compensation. Observers also view opposition to the oil embargo as politically motivated, as Orban is considered pro-Russian. He won the parliamentary elections in April mainly by promising to keep his country out of the war in Ukraine.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
