Around one quarter of Hungarian businesses now pay the tax, the paper said, citing data from the Ministry for National Economy.

The number of businesses that pay KATA is up from about 175,200 at the end of last year and just 75,700 at the end of 2013, the year the tax was introduced, according to state news wire MTI.

Small businesses and entrepreneurs opting for KATA pay a flat monthly HUF 50,000 in a lump sum instead of corporate and payroll tax. Sole proprietors and limited partnerships are eligible to opt for KATA at any time during the year.