THE PHARMACEUTICAL SECTOR EXTRA PROFIT TAX WILL BE CANCELLED FROM JANUARY 2025
At a press conference held on July 10, 2024, Márton Nagy Minister of National Economy announced that in addition to the air traffic tax, the telecommunications and pharmaceutical extra profit tax will be cancelled from January 2025. The extra profit tax, which was compulsory for pharmaceutical manufacturers, was introduced to boost the revenue of the central budget’s Utility Protection Fund introduced by Government Decree No. 197/2022 (VI.4.) on Extra-profit Taxes.
In accordance with the announcement, the telecommunications surtax will also be repealed meaning that from January 2025 telecoms service providers will no longer be subject to this obligation. The Minister explained that the extra profit tax on the banking sector is justified and remains effective for credit institutions and financial enterprises.
According to the press release, pharmaceutical manufacturers can rightly expect to say farewell to the extra profit tax from January 2025, but as with all other announcements, this change will only become effective after the enactment of the necessary legislation.
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