Constitutional control of tax legislation broadened – 17th Amendment to the Fundamental Law now in force
28/07/2026
On 13 July 2026 Parliament adopted, and on 18 July 2026 promulgated, the seventeenth amendment to the Fundamental Law of Hungary, as a result of which the framework for the constitutional review of domestic tax and budgetary legislation will change substantially.
For more than a decade a stringent rule constrained the Constitutional Court: where public debt exceeded half of gross domestic product, the Court could annul financial and tax legislation only in the most exceptional circumstances – for example, where fundamental human rights were impaired. The amendment now adopted has repealed the relevant paragraphs of Article 37 of the Fundamental Law, so that this constraint will no longer impede the substantive review of legislation. As a result, statutes concerning central taxes, duties, customs duties and the framework rules for local taxes will once again be subject to full constitutional control.
The change significantly widens the scope for businesses and individuals in tax disputes. If, in future, a newly introduced tax rule imposes a disproportionately heavy financial burden, takes effect retrospectively, or is drafted in terms that are obscure and undermine legal certainty, affected parties will have a substantially greater prospect of recourse to the Constitutional Court.
It is important to emphasise, however, that the strict formal and legal preconditions for the Court’s procedure (including proof that the petitioner is directly affected) will remain in place; tax statutes will not become automatically challengeable by any person.
Should you have any questions regarding the above, please feel free to contact our expert colleague.
