Political analyst Gábor Török says Hungary’s new tax proposals would raise payments for some current KATA taxpayers while restoring the regime to groups that lost access to it.
Prime Minister Péter Magyar announced plans to widen the KATA tax regime, introduce a wealth tax on billionaires and end a tax benefit for professional athletes. The government intends to put the proposals to public consultation, so the announced terms are not yet law.
Török said the debate over whether the package means tax rises or cuts misses both sides of the plan. Monthly payments would increase for entrepreneurs who already use KATA. At the same time, some people excluded from the regime after it was restricted in 2022 could return, reducing their tax burden.
Under the announced plan, the fixed monthly payment for full-time entrepreneurs would rise to 100,000 forints. Those invoicing only private individuals would receive a reduced rate of 75,000 forints through 2028. Pensioners, students and people with secondary employment would also be allowed to choose KATA again; the monthly payment for the latter group would be 50,000 forints.
The proposal would also restore the ability to invoice companies. A 15% tax would apply to annual revenue from corporate clients above 8 million forints. Former prime minister Viktor Orbán described the measures as the first tax increases, while the Fidesz and KDNP parties also issued statements.