Mihály Varga: the government will introduce the extra profit tax in 2024

By: Trademagazin Date: 2023. 05. 19. 14:02

Next year, the government expects to remove the extra burdens, as previously promised, the Minister of Finance stated at the 34th annual board meeting of the Hungarian Bank Association in Budapest on Friday.

He emphasized: the Hungarian banking system is able to perform well even in the deteriorating international environment. The economy would not be able to function smoothly without the appropriate banking sector, and the sector could not be effective without a well-performing economy, the minister said.

The favorable labor market data and the permanent number of employees of 4.7 million also indicate that the Hungarian economy will hold up even in times of war. Maintaining this is an important task in the future as well, he said. The minister emphasized: based on last year’s data, the capital adequacy ratio of the banking system exceeds the regulatory minimum by two times, and the loan/deposit ratio is also more favorable than the EU average.

Economic protection during times of war and energy crisis has costs, he explained, underlining that the government still sees the extra-profit tax introduced last year as a temporary solution.