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Economics

Orban’s Economy Chief Defends Windfall Tax After Market Rout

  • Mol refiner, OTP Bank to take biggest hit from Hungary tax
  • Minister Nagy seeks to reassure investors after market plunge
A Mol Nyrt. oil refining plant in Hungary.
A Mol Nyrt. oil refining plant in Hungary.Photographer: Akos Stiller/Bloomberg
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Hungary’s planned windfall tax is the least harmful way of raising revenue needed to consolidate the budget that’s been effectively cut off from European Union funding, a key government official said.

The tax, announced this week, is “extremely targeted” and seeks to add revenue of more than 800 billion forint ($2.2 billion) this year and in 2023, mostly to cover household utility subsidies as costs have soared after Russia attacked Ukraine, Economic Development Minister Marton Nagy said in an interview late Thursday.