Prime Minister of Hungary Viktor Orban issued the first decree after the introduction of a state of emergency in the country on May 23: large companies will have to send their additional profits to the country’s budget. About it writes Bloomberg, citing a video message from the Hungarian prime minister.
According to the decree, companies from the banking, energy, telecommunications, aviation sectors, as well as large retail chains, must transfer part of their profits to two specially created funds for two years.
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The money from these funds will be used to subsidize citizens for utility bills, as well as to finance the modernization of the Hungarian army.
“We ask and expect that those who have received additional profit during this war time will help the people and contribute to the national defense budget,” Orban said in a video message.
The “expropriation” of profits, according to Orban, will help balance the state budget, which has lost additional allocations from European Union funds. A significant part of the state budget expenditures was used by Orban’s party to win the elections on April 3, the agency specifies.
Days after Orbán’s landslide victory, the European Commission launched a newly created mechanism that allows it to cut funding to member states where corruption and rule of law problems exist.
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