UPDATE 1-Hungary PM Magyar says tax reform will come after new 2026 budget

Hungarian Prime Minister Peter Magyar ‌said ​on Thursday that his government planned to create a level playing field for local and foreign investors and reform taxation ‌but first it would pass a new budget for 2026 after runaway spending by its predecessor. Speaking in Vienna after meeting Austrian Chancellor Christian Stocker, Magyar said he asked for "some ‌patience" before his government could look at a special retail tax that former prime minister ‌Viktor Orban levied on retailers, and which was criticised by Austria.

Hungarian Prime Minister Peter Magyar ‌said ​on Thursday that his government planned to create a level playing field for local and foreign investors and reform taxation ‌but first it would pass a new budget for 2026 after runaway spending by its predecessor.

Speaking in Vienna after meeting Austrian Chancellor Christian Stocker, Magyar said he asked for "some ‌patience" before his government could look at a special retail tax that former prime minister ‌Viktor Orban levied on retailers, and which was criticised by Austria. Magyar said taxes could be discussed in the medium and long term. Orban's government, ousted by Magyar in a landslide election victory after 16 ⁠years ​last month, taxed ⁠large retailers as part of an economic package to tackle the fallout from the coronavirus pandemic in 2020, ⁠with a progressive tax rate that hit the largest retail chains the most.

"I told the chancellor ​that the Hungarian budget is in a bad state," Magyar said. "Our priority now ⁠is to pass a new budget for 2026...based on reliable data and which can kickstart economic growth." "Of course ⁠in ​the medium or long term we can talk about changes in various taxes... We ask for patience." Stocker said Austrian companies needed reliable conditions to be successful.

"The ⁠special tax we discussed today is clearly at odds with that, and the European Commission ⁠also shares the ⁠view that this special tax constitutes discrimination against Austrian companies. I am convinced that we can resolve this in the interests of both ‌sides," he ‌said.