Ryanair to appeal $780,000 fine against Hungarian authorities

Hungary recently fined international carrier Ryanair 300 million forints ($780,000). The fine comes following a consumer protection investigation. The fine would be part of a new tax recently added to air carriers. The airline responded, requesting a call.

Heavy fines

On Monday August 8, 2022, the Hungarian Minister of Justice announced that Ryanair was legally obligated to pay $780,000 to the Hungarian state. The announcement came shortly after a consumer protection investigation was conducted into the airline. The fine stems from a recently imposed tax aimed at taxing any profit that the state deems to be additional profit.

Ryanair responded to the fines in an email just hours ago. The airline said it was ready to appeal the fine in the email. The airline called it an unfounded fine imposed by the Hungarian Consumer Protection Agency.

An unwelcome tax

This is the first time that Ryanair has been overwhelmed by this relatively new tax imposed on large companies. The tax was introduced in May 2022 when the government, under Prime Minister Viktor, introduced a new tax worth 800 billion forints (over $2 million). The tax was intended to help rebuild the government’s budget after the prime minister used a significant portion of his capital to help with his re-election.

The tax aims to tax big business for what it sees as additional profits. This tax does not replace any previously existing tax. It is simply an additional tax that companies are required to pay to be more profitable than they should be, according to the Hungarian government.

Ryanair has previously petitioned the Hungarian government to remove this tax to no avail. Photo: Getty Images

Earlier, Ryanair had called on the government to scrap the misguided tax. Stating that it would harm the growth of the Hungarian travel industry and its overall economy. This tax applies to more companies than just airlines. However, as far as airlines are concerned, this tax is charged according to the number of departing passengers, so airlines may soon be required to add additional fees on passenger tickets to account for this increase. of the tax.

The airline said it should redirect its capacity for growth to other countries working to rebuild the industry in the wake of the COVID-19 pandemic, not hamper it further. WizzAir also commented on the new tax. Stating that it would take a long time for the industry to return to pre-pandemic levels and that this tax will only slow that recovery.

Hungary reaffirms its position

The Hungarian government supports this new tax which it considers justified. She says the investigation uncovered issues that were detrimental to the consumer. He claims the airline is using unfair business practices to gain extra profit. Justice Minister Judit Varga said:

“The Consumer Protection Authority today found a breach of the law, as the airline misled customers with its unfair commercial practice,”

Ryanair has been fined $780,000 by the Hungarian government. This fine would be the tax due to the Hungarian government as part of a recently imposed tax aimed at taxing all the additional profits made by large companies. The fine comes after an investigation allegedly found the airline was using an unfair marketing strategy to squeeze extra profit from its customers. The airline responded by requesting a call.

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Source: Reuters