Bank360: The government will introduce automatic inflation-tracking tax increases

By: Trademagazin Date: 2024. 10. 31. 11:03

The government is introducing automatic tax increases for several taxes. According to the bill submitted to the parliament, from 2025, the itemized excise tax on alcoholic beverages, tobacco products and fuel, as well as the motor vehicle tax and the registration tax, will increase every year by the rate of inflation – Bank360.hu noticed.

Although it was not mentioned in the announcement of the Ministry of Finance, the tax law proposal submitted to the parliament on Wednesday introduces a real innovation for the automatic increase of taxes. Starting in 2025, the rates of many taxes and duties will automatically increase each year by the rate of inflation, without the need to change the laws again. According to Bank360.hu, the innovation will hurt motorists the most next year, as this method will be introduced for the first time in addition to excise taxes, registration tax, motor vehicle tax and vehicle registration tax.

Inflation has not only devalued taxpayers’ incomes considerably in recent years, but also the taxes determined item-wise, i.e. not in percentages, but in specific HUF amounts. The Ministry of Finance solves its own problem by introducing an inflation-tracking tax increase, and it also uses a solution that does not require regular amendments to the law on these taxes if it wants to include the effect of inflation in budget revenues.