Elements of Sustainability in the Hungarian Tax Law

Pardavi, László (2025) Elements of Sustainability in the Hungarian Tax Law. JOG ÁLLAM POLITIKA: JOG- ÉS POLITIKATUDOMÁNYI FOLYÓIRAT, 17 (2). pp. 21-34. ISSN 2060-4580

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Abstract

This research provides an in-depth analysis of the nexus between Hungary’s tax system and sustainable development objectives, framed within the international frameworks established by the United Nations’ Agenda 2030 and the Brundtland Commission’s definition of sustainable development. Through examining the environmental, social, and economic dimensions of Hungary’s tax system, the study explores the extent of alignment with sustainability principles and identifies areas for further enhancement. This study aims to examine the sustainability-related aspects of certain forms of taxation which, although not classified as green taxes in the strict legal sense, may nonetheless incorporate elements of environmental significance. Additionally, this study assesses the Carbon Border Adjustment Mechanism (CBAM), a key legislative component within the European Union’s Green Deal. CBAM seeks to mitigate carbon leakage by implementing a carbon price on imports, promoting cleaner technologies, and fostering global decarbonization. This paper evaluates the potential economic and trade-related implications of CBAM on Hungary and highlights the mechanism’s capacity to bolster domestic climate action within Hungary’s economic structure. The findings indicate that while certain sustainable elements are present within Hungary’s current tax system, additional reforms are warranted to incorporate sustainability principles fully. Recommendations for the expansion of environmental taxes, the fortification of incentives for sustainable practices, and the integration of broader social and economic considerations are propose as pathways to optimize Hungary’s tax framework toward a more sustainable future.

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