PM Orbán: We’ve Agreed On Eleven Measures To Support Small Businesses

Budapest: Prime Minister Viktor Orbán, alongside Hungarian Chamber of Commerce and Industry President Elek Nagy, announced a new support package for small and medium-sized enterprises (SMEs) at a joint press conference on Monday. The government introduced an eleven-point action plan focused on reducing taxes, easing administration, and shielding Hungarian businesses from the economic pressures of an increasingly militarized European Union.

According to About Hungary, PM Orbán warned that the EU is moving toward a war economy, citing proposals to finance an 800,000-1 million-strong Ukrainian army and to direct up to 25% of the next seven-year EU budget toward Ukraine. He posed the central question: should Hungary accept this direction, or continue to pursue its own independent economic policy?

The government believes it is still possible to follow a national strategy. ‘We must hold our ground. The war’s effects cannot be avoided, but we will not surrender our non-wartime goals,’ PM Orbán stressed. He added t
hat today’s agreement is based on this very assessment.

The eleven new measures include a gradual increase of VAT exemption thresholds, rising to HUF 20 million in 2026, HUF 22 million in 2027, and HUF 24 million in 2028. There will also be higher flat-rate expense allowances, reaching 45% in 2026 and 50% in 2027. A reduced social contribution base for full-time sole proprietors aims to ease the burden for approximately 140,000 individuals.

Further steps involve expanded eligibility for the small business tax (KIVA), opening access for 4-5,000 additional companies, and HUF 100 million in tax relief to support environmental remediation and brownfield green investments. Tax incentives will be provided for energy providers to modernize infrastructure amid slowing development, along with revised retail tax brackets, easing tax burdens for some 350,000 businesses.

Additionally, there is a six-month deferral of the fuel excise tax hike, with the possibility of further extension. The raised threshold for corporat
e tax advance from HUF 5 to 20 million and simplified financial reporting for microenterprises, with the threshold raised from HUF 150 to 180 million, are also key measures. Special administrative relief will be provided for 80,000 sole proprietors.

This package builds on the earlier launch of the 3% fixed-rate loan program and represents the second stage of government-chamber cooperation. PM Orbán confirmed further steps will follow, reiterating the priority: ‘Our focus is on preserving Hungarian jobs.’