Hungary government proposes wealth tax on ultra-rich

BUDAPEST, Oct 6 - Hungary's government has proposed a wealth tax targeting individuals with assets exceeding 1 billion forints ($3.08 million), Prime Minister Peter Magyar said on Tuesday, delivering on a campaign promise of his governing Tisza party.The centre-right Tisza defeated veteran Prime Minister Viktor Orban's nationalist Fidesz party in an April election, ending his 16-year rule, and must now tackle a budget deficit projected at 7.5% of national output again this year.• For those with wealth exceeding 1 billion forints, the government proposes an annual 1% wealth tax on the portion of their wealth above that threshold, starting in January 2027.• Those with wealth above 100 billion forints ($308 million) would face a higher rate of 1.5% on the excess, Magyar said in a video posted on his Facebook page.• The tax would include all forms of wealth, including real estate, investments, company holdings, and assets located outside Hungary, with loans deductible from the tax base.• It remains unclear what impact the new tax will have on next year's budget. The government is set later this month to announce its 2027 budget and a roadmap towards adopting the euro.• Hungary's wealthiest man in 2025 was Lorinc Meszaros, a childhood friend of Orban, who — along with his family — was worth 1.786 trillion forints ($5.50 billion) according to the 2026 list published by Forbes.• Hungary's second richest man was Sandor Csanyi, chairman of OTP Bank, with wealth of 649.7 billion forints ($2 billion).• Magyar said the tax proposals would shortly be published on the government website for public consultation. It is then expected to be approved by parliament, where Tisza has a large majority. REUTERS