Hungary's new Prime Minister, Péter Magyar, has announced plans to introduce a wealth tax, targeting the oligarchs who benefited under former leader Viktor Orbán. The policy, described as a sign of 'social justice', could make Hungary the first current EU member to implement such a tax since the 1980s.
One of Hungary's richest men, advertising mogul Gyula Balásy, has already surrendered his businesses to the state, saying his companies had no future under the new government. Balásy was a prominent beneficiary of the Orbán era, with his poster sites used for state-funded propaganda campaigns.
The proposed tax would impose a 1% annual levy on assets exceeding 1 billion forints (£2.4 million), including property, shares, yachts, private jets, and assets held abroad. Wealth owned by spouses and children would also be liable. Finance Minister András Kármán is expected to provide further details by 5 June.
Political economist Zoltán Pogátsa supports the tax, arguing that existing taxes on wealth are too low and that the measure will ensure accountability. He notes that 38 of Hungary's 50 richest individuals acquired their wealth under Orbán through public tenders or extensive state contracts.
Among those affected is Lőrinc Mészáros, Hungary's richest man with a net worth of $5bn, who once credited his fortune to 'God, luck, and Viktor Orbán'. Orbán's son-in-law, István Tiborcz, with $245m, is also on the list. The wealth tax debate is global, with similar proposals in Brazil, California, and the UK, but Hungary looks set to move first.
