Special tax passed on Ryanair must pay hefty fines in

Special tax passed on: Ryanair must pay hefty fines in Hungary

The Irish low-cost airline immediately announced an appeal.

Irish low-cost airline Ryanair must pay a fine of 300 million forints (764,000 euros) in Hungary because the company passed a special tax introduced on July 1 to its passengers. Justice Minister Judit Varga wrote on Facebook on Monday that Ryanair “has misled its customers with unfair business practices”. The airline immediately announced an appeal.

Prime Minister Viktor Orban’s government introduced an extra tax on the profits of certain companies on July 1. She wants to use the income to reduce the sharp rise in energy and food prices. At Ryanair, the fee was 10 to 25 euros more per ticket – the low-cost airline passes these costs on, even for flights booked before 1 July.

Ryanair boss Michael O’Leary called the tax “idiot” when the government announced it was “road robbery”. He predicted a “spectacular drop in air traffic in Hungary”. On Monday, Ryanair stressed that European legislation allows the airline to set the prices of its tickets without interference. Ryanair reserves the right to sue in European courts.

(APA)