The government will also halve the windfall tax imposed on drugmakers if they invest in research and development, Gergely Gulyas told a briefing.

From July 1 the maximum a company will have to pay for 1 megawatt will be 200 euros ($218.46), Gulyas said, adding that the measure would cost the state around 40 billion forints ($116.89 million).

The price cap will apply to an estimated 5,000 companies in the processing industry, accommodation providers and the warehouse and transport industry.

In return the government expects these companies to not increase their prices until the end of the year. They will be monitored by the Hungarian Chamber of Commerce and Industry, Gulyas said.

The tax on pharmaceutical companies will be further reduced if they spend on research and development or they expand, the minister added.

($1 = 342.2000 forints)

($1 = 0.9155 euros)

(Reporting by Boldizsar Gyori, Editing by Louise Heavens)

By Boldizsar Gyori