5. Company car privilege is eating into Hungary’s wealth
Low taxation and unlimited private use of company cars systematically incentivize car use over environmentally friendly transport modes – with all the negative consequences for health and environment.
Hungary’s system of car taxation is an enormous incentive for car use – with all the negative consequences for health and environment. Companies pay a relatively modest tax for their company car, and then this car can be legally used for private purposes without any limit. And if a car owned by a private person is used for business purposes, then all the fuel costs plus an allowance of HUF 15 (about EUR 0.05) per kilometer can be paid out free of taxes – moreover, as this is not controlled, the private use accounted for as company use is widespread.

Driving to environmental destruction: Prices which do not reflect costs cause extremely expensive damage, undermine economic competitiveness, and contribute to the deterioration of our health and environment. It is impossible to finance such a system in the long term – and so, sooner or later, it will collapse.
Nominated by
Clean Air Action Group (Levegő Munkacsoport)
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