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European Court of Justice to rule on Hungarian special taxes

Issues

On March 3, the European Court of Justice will rule on a lawsuit filed by Tesco against the Hungarian state against the special retail tax. The Luxembourg-based body is expected to conclude that the special tax did not violate EU law, writes Magyar Nemzet. 

The special tax, one of a number of sectoral taxes introduced when Fidesz first came to power, was introduced in 2010 collected a total of HUF 86 billion from the retail sector over four years.

Tesco disputes the validity of its HUF 35 bln tax payment. The company complains that Hungarian retail chains did not have to pay progressive crisis tax.

In the lawsuit, filed in Hungary, the Metropolitan Administrative and Labor Court appealed to the European Court of Justice for a legal investigation.

The European body will also rule in early March on a special telecommunications tax in a lawsuit filed by Vodafone against the Hungarian state.

The paper says that the ECJ is expected to give the Hungarian government a fair hearing, in light of the EU Advocate General’s Opinions published earlier this year, stating that the tax regime applied by Hungary is not in conflict with state aid rules and the freedom of establishment, Magyar Nemzet adds.

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