Budapest court annuls state treasury's solidarity contribution decision for District XV

In a statement released on Thursday, the Fővárosi Törvényszék announced that it had overturned the Hungarian State Treasury's decision imposing a solidarity contribution on Budapest's District XV. The court ruled that the Treasury's decree was not subject to substantive review and instructed the authority to restart the procedure. It also invalidated the collection orders, deeming the enforcement notices illegal.

The ruling aligns with the district's argument that the Treasury's action lacked proper legal basis. The solidarity contribution scheme, introduced in 2017, has been a source of ongoing tension between the city and the central government. Mayor Gergely Karácsony has previously called the tax fundamentally unlawful and urged its abolition or a comprehensive overhaul. The court's order marks the first instance of a direct financial restitution decision in this long-running conflict.