Hungarian government defends wealth tax as fairness measure amid criticism

At the end of September in Szolnok, Prime Minister Magyar Péter revealed that the wealth tax taking effect in January will feature an additional, higher rate targeting the most affluent assets. He presented the tax as a component of a humane and equitable society, noting that revenues will help lower personal income tax for people earning under the median wage. Finance Minister Kármán András explained that Hungary's flat personal income tax, low corporate tax and favorable treatment of savings primarily benefit wealthier citizens, whereas consumption taxes hit poorer households harder.

Experts Krekó Judit and H. Nagy Dániel argued that, while the wealth tax may increase contributions from the very rich, its narrow scope limits its ability to overhaul the overall progressivity of the tax system. They also pointed out that other reforms, such as reduced VAT on essential goods and targeted tax credits, play a larger role in easing the burden on low-income earners.