Hungarian Prime Minister Viktor Orban said Wednesday his government would bring in a windfall tax on businesses to counter price rises blamed on the war in Ukraine, and to fund extra defence spending.

The announcement, which Orban made in a Facebook video, comes a day after he imposed a state of emergency, citing the challenges posed by the war in neighbouring Ukraine.

In Wednesday's statement Orban said the new tax would be levied on "banks, insurers, large retail chains, energy and trading companies, telecommunications companies, and airlines" and that the money raised would go to two special funds.

One of these will be for strengthening the army while the other will go towards price caps on energy and water bills.

The tax will apply for 2022 and 2023.

Orban justified the measure by saying that the war and "sanctions policy in Brussels" had led to "rising prices", which together with high interest rates "are giving banks and large multinationals extra profit".

Orban did not specify whether the tax would be implemented under the emergency powers.

The "details and numbers" of the measure will be announced at a press conference on Thursday, he said.

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Stock markets mixed as traders weigh dark outlook
Hong Kong (AFP) May 25, 2022
Markets were mixed Wednesday, with little sign of any relief from recent dour performances as investors remain fearful about the economic outlook owing to the impact of inflation, higher interest rates, China's slowdown and the Ukraine war. A series of weak indicators around the world and downbeat forecasts from big firms have chilled trading floors in recent weeks as the surge in prices begins to drag on consumer confidence, with warnings now swirling of a possible global recession. The tech se ... read more