Orbán cabinet submits bill on ‘special economic zones’

The government has submitted a bill on “special economic zones” to boost the rapid and effective implementation of major investment projects and regional infrastructure development projects, the Prime Minister’s Office said on Wednesday.

The projects in question must have a value of at least 5 billion forints (EUR 14.2 m) and an impact on the economy and employment not only on local but on regional level. It would therefore be more fair if several localities benefit from the related tax revenues, it said.

In addition to promoting investment, the bill enables a more balanced distribution of resources within counties, the office said.

Certain tax revenues from special economic zones can be used by the county governments for financing regional development and supporting towns and villages.

The change will not affect the current ratio of local and central taxes, and will not apply to investments in Budapest, districts of the capital and cities of county seat status, it said, adding that the central government will not draw away any resources from the municipalities.

The government’s economic policy aims to enable everyone to work and the designation of “special economic zones” will contribute to the restart of the economy, to job creation and preservation, the PM’s Office said.

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Source: MTI