Prime Minister Viktor Orbán said pensioners will be provided cards which they can use in shops to reclaim the VAT on certain products, adding that seniors could expect a refund of 10,000-15,000 forints (EUR 25-37) a month.

PM Orbán said on Facebook on Wednesday that earlier reductions of the VAT on a number of products "mostly benefitted large store chains rather than those intended".

"Therefore this time the government will not cut the VAT but refund it for basic food products with a higher than 5 percent VAT," PM Orbán said. "This mechanism will be available to pensioners and for them the simpler the process the more practicable," he added.

Pensioners will present their card to the cashier, "the card will be beeped and the purchase validated by the shop clerk, and [pensioners] will automatically receive the refund due to them", PM Orbán said.