Hungarian Government Accused of Oppressing Families Through SPAR Regulations
The Hungarian government is facing criticism for imposing what many see as excessive tax and pricing regulations on multinational food retailers, including SPAR.
According to the company, these measures are punishing not only the businesses themselves but also Hungarian families by driving up consumer prices.
SPAR Hungary has stated that it would be profitable if not for the extreme pricing and tax regulations unique to Hungary and not found elsewhere in the European Union. These regulations have forced the company to pay excessively high special taxes, making profitable operations in Hungary nearly impossible. "We are talking about a total of 120 million euros (48 billion HUF), a large portion of which we have to pay to the Hungarian state. To put it in perspective, this equates to nearly 8,500 euros (3.4 million HUF) per employee that we must pay. This is not something we can or will accept, which has led us to file a complaint with the EU," the company's management, including CEO Hans Reisch, informed their Hungarian employees in a letter. Reisch's statements last week elicited a strong response from the government.
In response to SPAR's actions, János Lázár, the Minister of Construction and Transportation, declared at a Portfolio conference that SPAR "will pay the price for what they did in the past days." The controversy further escalated with Lázár suggesting to the Prime Minister that, following claims by SPAR that the state, or according to some rumors directly the Orbán family, wanted to acquire a stake in the company, they should consider this a formal offer and "buy them out entirely."
The situation has drawn attention not only within Hungary but also at the EU level, further highlighting the tense relationship between the Hungarian government and multinational companies operating within its borders.
SPAR Hungary has stated that it would be profitable if not for the extreme pricing and tax regulations unique to Hungary and not found elsewhere in the European Union. These regulations have forced the company to pay excessively high special taxes, making profitable operations in Hungary nearly impossible. "We are talking about a total of 120 million euros (48 billion HUF), a large portion of which we have to pay to the Hungarian state. To put it in perspective, this equates to nearly 8,500 euros (3.4 million HUF) per employee that we must pay. This is not something we can or will accept, which has led us to file a complaint with the EU," the company's management, including CEO Hans Reisch, informed their Hungarian employees in a letter. Reisch's statements last week elicited a strong response from the government.
In response to SPAR's actions, János Lázár, the Minister of Construction and Transportation, declared at a Portfolio conference that SPAR "will pay the price for what they did in the past days." The controversy further escalated with Lázár suggesting to the Prime Minister that, following claims by SPAR that the state, or according to some rumors directly the Orbán family, wanted to acquire a stake in the company, they should consider this a formal offer and "buy them out entirely."
The situation has drawn attention not only within Hungary but also at the EU level, further highlighting the tense relationship between the Hungarian government and multinational companies operating within its borders.
Translation:
Translated by AI
