On 4 June, the European Court of Justice ruled in favour of Hungary and against the European Commission’s decision that certain Hungarian tax rates breached EU state aid rules, reported Hungary Today.

In 2015, the European Commission told Hungary to suspend a progressive health tax on the trade and turnover of tobacco products. The EC also stated that a progressive fee for food chain inspection was also to be suspended. The reasoning behind this was that the EC believed the arrangement amounted to state aid, as it helped companies with a lower turnover, which subsequently gave these companies an advantage over their competitors. Hungary challenged the EC’s decision, objecting to its reasoning, and on 4 June, the European Court of Justice ruled in Hungary’s favour.
According to the report, Hungary’s justice minister, Judit Varga, stated that the most significant aspect of the court’s decision was that it specified how the EC may order the suspension of a national law during state-aid investigation procedures. She also stated that the Court of Justice of the European Union (CJEU) ruling concerned direct taxation, an important part of the sovereignty of EU member states.