Budapest, January 29 (MTI) – Hungary’s recent cutting the VAT on construction from 27 percent to 5 will result in “another boom” in the materials market, daily Magyar Idok said on Friday.
The paper added, however, that a lack of skilled labour in construction could have negative impacts.
Gyozo Vidor, head of the national construction materials federation (Measz), told the paper that the VAT cut may take another year to have spectacular results. Builders now are in the process of selecting sites, having designs made and obtaining permits, with the actual construction phase to start in the first half of next year, Vidor said.
Measz has proposed that the VAT on construction should be kept at the current, low level for another ten years, and that the VAT on energy saving renovation projects should also be reimbursed.