The resigning government has issued a late-Thursday decree ensuring that the advertising tax rate remains at 0 percent, effectively blocking its scheduled return. The measure, signed by Orbán Viktor, takes effect this Friday.
A Sudden Policy Reversal
Previously, the autumn tax package had only extended the advertising tax exemption by six months rather than the usual year. Under those regulations, the exemption was set to expire on June 30, 2026.
This timeline meant that a 7.5 percent revenue-based tax burden was scheduled to be reintroduced on July 1, 2026. Though, the new emergency decree overrides these provisions.
Legal Mechanics of the Decree
The decree’s second paragraph explicitly states that from July 1, 2026, the tax rate will be 0 percent of the tax base. This ensures the tax does not return as originally planned.
the third paragraph of the emergency decree removes the actual tax payment obligation by exempting several sections of the Rtv. From application after June 30, 2026.
The government also decided that Section 12 of the Rtv. Will not be applied. This section previously governed the payment of tax advances for the tax year including July 1, 2026.
Budgetary Implications
The decision may result in a significant loss of expected state income. The Ministry of National Economy had previously forecasted 10 billion forints in revenue from this tax for the second half of this year.
For the following year, the ministry had anticipated annual revenues between 25 billion and 30 billion forints. With the new decree, these projected sums may no longer materialize.
Frequently Asked Questions
When was the advertising tax originally scheduled to return?
The tax was scheduled to return on July 1, 2026, after the 0 percent exemption expired on June 30, 2026.
What was the expected tax rate for businesses?
The tax was set to be a 7.5 percent revenue-based burden.
How much revenue did the government expect to lose?
The Ministry of National Economy expected 10 billion forints in the second half of 2026 and between 25 billion and 30 billion forints annually the following year.
How will the loss of these projected billions impact the broader national budget in the coming years?
