He said seniors could expect a monthly refund of HUF 10,000-15,000 (EUR 25-37). Orbán noted that previous VAT reductions on select products had “mostly benefited large store chains rather than those intended.”

As a result, instead of cutting VAT, the government will provide refunds on basic food products with a VAT rate higher than 5%, he explained.

He added that the system would be designed with simplicity in mind for pensioners.

At checkout, pensioners will present their card, which the cashier will scan, and the refund will be automatically processed.