Hungary Eyes 'Hamburger Tax'

by Ulrika Lomas, Tax-News.com, Brussels

14 March 2011

The Hungarian government is reportedly considering the idea of introducing a so-called ‘hamburger tax’ in Hungary, in a bid to generate additional fiscal revenues for the government and to reverse increasingly unhealthy dietary trends.

Hungary’s Economy Minister György Matolcsy recently confirmed that ministers are examining the possible effects of introducing such a tax in Hungary. Studies conducted over the past few years into the dietary habits of the population and the effects on health show that problems linked to excessive fat and salt consumption have increased, Matolcsy emphasized.

Determined to reverse this process, Matolcsy revealed that the relevant ministries are now assessing which taxes could be introduced and evaluating their economic impact. According to the minister, it remains as yet unknown, however, which products would be affected by the tax, the amount of the tax, and even the possible use of fiscal revenues arising from the levy.

Nevertheless, the Hungarian government has clearly demonstrated that it is highly creative in its taxation of specific sectors of the country’s economy. Last year, the decision was taken to impose a highly controversial annual bank tax of 0.15% or 0.5% on the balance sum of the country’s banks in 2010 and 2011, and to extend the 8% exceptional crisis tax, imposed on certain energy companies since 2009, to telecommunications operators and to commercial retail chains in Hungary.

The Economy Minister’s latest comments followed earlier reports that the government is considering imposing a tax on unhealthy foods.

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