The Hungarian company Wizz Air will increase its prices because of the additional taxes? !

The Hungarian company Wizz Air could increase its prices due to the government’s plans regarding the so-called exceptional taxes. The additional tax will concern eight areas, and the administration would like to collect with its help 800 billion forints per year.

Wizz Air will introduce higher ticket prices?

The president of the Hungarian low-cost airline said hvg.hu that the sector suffered significant losses during the coronavirus epidemic. Moreover, its revenues and profits will not reach pre-pandemic levels for a long time. Therefore,

nobody can talk about “extra profit” in the case of airlines.

The fifth Orbán administration plans to introduce a surcharge on all airlines operating in Hungary, with a charge of €10-15 per passenger. However,

that would mean higher ticket prices

in a sector that has been in deficit for two years. “To question this fact goes against the most elementary economic analyses,Robert Carey, the president of Wizz Air, told the Hungarian media.

HVG asked the Hungarian airline after the announcement of the new exceptional taxes on Thursday. In the case of the air transport sector, the direct contributors would be the ground handling companies. Of course, they could pass this on to the airlines involved. However, it seems that ultimately passengers will pay the additional tax.

The government surcharge concerns these eight sectors

In Hungary, Wizz Air handles the largest air traffic. Therefore, the new tax will affect them the most. The company’s president said every additional burden the industry faces is hampering its recovery. Wizz Air’s problems affect the Hungarian economy, he added.

Wizz Air reported a loss of €721 million between April 1, 2020 and March 31, 2021. A year earlier, its profit was €286 million. In the last financial quarter, the company’s loss amounted to 267.5 million euros.

Like us reported previously, the government aims to raise 300 billion forints a year from the banking sector, including 50 billion by expanding transaction rights, said Thursday Márton Nagy, Minister of Economic Development. A total of 50 billion forints will be collected from insurers and 300 billion energy sector companies, a large part of which is to be collected from the Hungarian oil and gas company MOL, the minister said. The government will collect 60 billion forints from retailers40 billion telecom operators,

30 billion Airlines companies,

and 20 billion forints of pharmaceutical companiesnot counting small pharmacies, he added.

Read alsoThe Hungarian company Wizz Air will increase its prices because of the additional taxes? !

Source: hvg.hu, DNH

Laura T. Thrasher