Small gas stations have taken a breather

By: Trademagazin Date: 2024. 12. 11. 10:49

Resolute action and mutual negotiation skills were needed to keep hundreds of small gas stations operating. With the help of their professional interest group VOSZ, they were able to convince the economic government that it was necessary to save hundreds of small and medium-sized enterprises that operate correctly and pay taxes, thousands of employees, and at the same time the fuel supply of many small regions.

Of course, the rod has been hitting small gas stations – that is, fuel retailers that operate independently, not as part of large networks – in recent years: first in 2022, measures against the explosion in fuel prices following the COVID crisis brought these businesses to the brink of bankruptcy. It is worth remembering that due to the prolonged fuel price freeze, they were obliged to sell fuel at a fixed price of 480 forints, the wholesale purchase price of which had increased higher than this, i.e. these companies were forced to make a loss. Together with the economic government, we finally managed to offset part of the losses with price support and other means, thus saving most of the affected businesses.

Now, in 2024, the extra profit tax – the “sky-high” retail tax – almost sealed their fate: the unified tax rate at 3% meant a 20-fold tax increase in this SME segment, which, together with the other public burdens and cost elements – in the absence of extra profit – would have driven these companies into losses again. Typically, these are Hungarian, privately owned, often family-owned businesses developed with decades (or even a lifetime) of work and reinvested profits, which are often the only petrol and diesel service providers in many small regions, thus playing a key role not only in the employment of thousands of people, but also in the operation and development of these areas, whether in terms of agriculture, industry, or services.

VOSZ once again came to the aid of the affected business community and, together with the Association of Independent Petrol Stations (FBSZ), which was formed after the last crisis, approached the Ministry of National Economy to intervene against the mass closure of companies. The well-founded professional request was heard and this year’s autumn tax package remedied the most pressing problem of small petrol stations: according to the law, the tax payable can be reduced by the amount of tax on net sales revenue from fuel retail activities.