Hungarian budget cuts margin stop but raises retail tax, sparking mixed reactions

During a pre-session address to the Országgyűlés, Magyar Péter detailed a budget package that includes higher wages, a reduction in personal income tax, a doubling of the family allowance and selective tax hikes. The National Trade Association (OKSZ) praised the decision to eliminate the margin-stop, noting that it should revive genuine market competition and allow deeper discount promotions on staple foods, which many Hungarian households actively seek.

At the same time, the OKSZ criticised the planned increase in the retail special tax, saying it will add to the burden of an already loss-making sector and undermine the competitiveness of the domestic food supply chain. The association urged the government to phase out all extraordinary taxes on the sector as a first step toward stable prices and quality food offerings. It also warned that other tax hikes announced on the same day, such as corporate, advertising, vehicle and innovation levies, will further strain the industry.