Peter Magyar Proposes Wealth Tax to Cut Budget Deficit
Hungarian Prime Minister Peter Magyar proposed a wealth tax on the ultra-rich to address a projected budget deficit of 7.5% of national output.
Peter Magyar, the Prime Minister of Hungary, announced a proposed wealth tax targeting the ultra-rich to address a projected budget deficit of 7.5% of national output. The proposal fulfills a campaign promise of the governing Tisza party, which ended Viktor Orban's 16-year tenure after an election victory in April.
Starting in January 2027, the plan introduces an annual 1% tax on assets exceeding 1 billion forints, roughly $3.08 million. Individuals with assets surpassing 100 billion forints, or $308 million, would face a higher rate of 1.5% on the excess. The tax base encompasses foreign assets, company holdings, investments, and real estate, though the government will allow for loan deductions.
The proposal will undergo public consultation before being submitted to parliament, where the Tisza party holds a large majority.
