The progressive tax would be set at 0.2% – namely at least 30 million forints (EUR 98,000) – on net revenue of up to 30 billion forints, at 2.5% for 30 billion forints to 60 billion forints and at 4.5% for anything above that.

The proceeds from the tax would be earmarked exclusively for financing state-funded health care.

The tax aims to create a “fair sharing of the public burden” and to finance the restructuring of the health-care system, according to its author, MP Kristóf Szatmáry.

Because it is a one-off tax, “tobacco industry companies will, in reality, bear the brunt of the burden, and market players will not pass on the burden to consumers”, according to the bill’s justification.

Source www.hungarymatters.hu

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