Margin stop: Exaggeration or necessary step? OKSZ’s criticism of the government’s measures

By: Trademagazin Date: 2025. 03. 14. 10:41

The government’s margin freeze has sparked another controversy in the food retail sector. The measure aims to prevent unreasonably high margins on basic foodstuffs, but according to the National Trade Association (OKSZ), the measure could have serious consequences for both the Hungarian food retail and the agricultural sector, writes Telex.

According to OKSZ, margins are not profit

The government has capped margins at 10 percent for 30 basic foodstuffs in order to reduce inflation and burdens on the population. However, according to OKSZ, margins are not the same as profits, as they cover operating costs, including:

the wages of nearly 50,000 employees,
overhead costs paid at market prices,
public charges and taxes, such as the 4.5% special retail tax, which alone generates 300 billion forints in annual revenue for the state.

The organization highlighted that retailers are not necessarily “profitable”, most of them have been losing money or making only modest profits for years. In contrast, food manufacturers continue to make significant profits, and the margin freeze does not apply to producers and suppliers, whose prices are still free to fluctuate.