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Speaking in Szolnok, Magyar said the proposed changes would once again allow entrepreneurs using KATA to invoice companies and organizations as well as private individuals.
Eligibility would also be extended to entrepreneurs operating alongside a primary job, pensioners and university students. Magyar said work was underway on a solution that could allow 100,000 or more additional small taxpayers to join the scheme.
The plans also include increasing the annual revenue threshold to HUF 19 million.
Magyar said expanding the scheme would require addressing taxpayers’ social security and pension entitlements.
“You cannot leave hundreds of thousands of people in a country without a pension. One must think not only of tomorrow, but also of the day after,” he said.
Monthly KATA payments would consequently need to rise, either significantly in a single step or through two smaller increases, the prime minister said.
Fidesz parliamentary group leader János Bóka criticized the announcement on Sunday, accusing the governing Tisza Party of breaking its campaign promises to small businesses.
“Peter Magyar announced a significant tax hike for KATA taxpayers,” Bóka wrote on Facebook. “It is interesting that not a word was said about this during the campaign. The substantial tax increase is allegedly necessary so that KATA taxpayers can also qualify for sick pay and pensions. However, KATA taxpayers are already eligible.”
Bóka said Magyar had promised to reintroduce KATA on October 23, 2024, and pledged in February 2025 to reduce the tax burden on small businesses.
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