Orban's Billion Forint Boost for Restaurants Ahead of Election

Hungarian Prime Minister Viktor Orban's government has unveiled a 100 billion forint package to support the restaurant industry, amidst efforts to revive the economy before the April election. The package includes liquidity support, tax exemptions, and energy price subsidies to help businesses and citizens cope with rising living costs.

The government of Hungarian Prime Minister Viktor Orban announced a 100 billion forint ($304.42 million) package aimed at revitalizing the nation's restaurant industry. This move comes as Orban faces challenges in boosting the economy ahead of the April elections, with his Fidesz party trailing behind opposition contender Tisza in recent polls.

The support measures include liquidity assistance for restaurants, reduction of a tourism tax, and the waiving of entertainment spending levies for businesses contributing up to 1% of their turnover. Furthermore, nearly 10,000 restaurants will reportedly benefit from the ability to classify up to a fifth of their revenue as a service fee, thus diminishing their tax burden. These steps aim to alleviate financial pressures on the sector, which contends with rising minimum wages and energy costs.

In what appears to be a broader strategy to secure public favor, Orban's government has also promised tax breaks for families, wage increases, pension top-ups, and subsidized housing loans. Despite Fitch Ratings recently downgrading Hungary's outlook to negative due to pre-election spending, the administration continues to consider changes to energy price subsidies.

(With inputs from agencies.)