November 10, 2022

Price cap and excess profit tax extension for power plants

Government extends food price cap to eggs of all sizes and potatoes. For example, the gross sales prices in retail and mail order must not be higher than the prices applicable on September 30, 2022. This means that egg prices will fall by around 25% and potatoes by around 10%. All price caps (including those ordered earlier) will initially apply until the end of 2022, after which a decision will be taken as to whether they will be extended.

Until December 31, 2022, the government will also decide on energy prices. The network charges for private consumers are not to be increased next year. The energy purchased at higher market prices should also not be passed on to the population. Therefore, the government will levy an excess profit tax on power plants that provide compensation, with the tax rate set at 13% in 2022 and 10% in 2023. (It means an additional approx. HUF 40 billion / EUR 99.5 million for the state budget.)