Press Release: Increasing the extra burden on banks will affect the entire Hungarian economy, slowing down economic growth further and damaging the country's reputation

The Hungarian Banking Association is baffled by the planned increase in the so-called extra profit (windfall) tax, as the consequences of the severe overtaxation of the financial intermediary system to date are clearly reflected in Hungary's unfavourable economic indicators.

When the so-called extra profit tax was introduced in 2022, originally planned for two years, the Hungarian Banking Association already indicated that the measure would not only undermine the profitability of banks, but also significantly worsen the situation and prospects of the entire Hungarian economy. Since the measure was introduced, the benchmark interest rate has fallen from 18% to 6.5%, which means that the extra tax is no longer justified and should be abolished rather than increased. Domestic banks have repeatedly stated that the extra burden imposed on top of hundreds of billions of forints in traditional taxes deeply and negatively interferes with the market processes of the financial intermediary system, thereby not only undermining the sector's efficiency and international competitiveness, but also reducing investor confidence in the Hungarian economy.

The tax and regulatory systems applicable to banks and their frequent changes are a direct result of the unfavourable economic trends of recent years, including low levels of investment, persistently high inflation and lack of growth.

According to the budgetary plan, in 2025 Hungarian banks will pay HUF 842 billion into the state budget in the form of special taxes, windfall taxes and transaction fees, in addition to traditional taxes (Source: 2025 budget https://net.jogtar.hu/jogszabaly?docid=a2400090.tv), and this amount does not include the impact of the repeatedly extended interest rate cap, the ATM installation obligation and the planned significant increase in the free cash withdrawal limit, which will amount to tens of billions of HUF.

The Hungarian Banking Association emphasises that stimulating economic growth is in all stakeholders’ universal interest, which requires an increase in the loan portfolio, and this is why domestic banks are participating in the implementation of state-supported programmes.

However, the currently planned measure is contrary to the interests of domestic economic stakeholders and the general population, damages Hungary's reputation, and also offers unjustifiable extra benefits to cross-border service providers present in Hungary, and this is why the Hungarian Banking Association strongly opposes it.

11 November 2025

Hungarian Banking Association