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In this paper, we have reviewed some of the most important measures taken to restore the competitiveness of the Hungarian tax system, mainly in the areas of consumption taxes, environmental taxes and sustainable taxation. We have examined the pre-pandemic situation of Hungarian tax policy, the most typical action plan, changes in consumption taxes and environmental taxes. Since 2010, Hungarian tax policy has undergone significant changes, with the aim of increasing the competitiveness of the economy. The COVID 19 epidemic in 2020 brought new challenges, numerous changes and setbacks at both social and economic level, which needed to be responded to effectively and in a short time. Measures such as simplifying tax administration, increasing the competitiveness of businesses, enhancing the role of consumption taxes, strengthening green taxation and linking taxation and sustainability through the fight against tax avoidance. The increase of the VAT rate to 27% in 2012, shifting the focus to the consumption tax, has had a positive impact on economic growth, while reducing taxes on labour, but new challenges have been faced in the aftermath of the pandemic. This paper summarises the challenges and the steps taken to address them. KEYWORDS: . [ABSTRACT FROM AUTHOR]