Hungarian FM Szijjártó: International corporate world continues to trust Hungary
Continuous investment records prove that the players in the international corporate world continue to trust Hungary, Minister of Foreign Affairs and Trade Péter Szijjártó said on Thursday in Budapest when announcing a HUF 9bn investment by Dutch-owned Aalberts Surface Technologies.
Szijjártó: Hungary needs similar investments
The minister said the metal surface treatment company is expanding capacity at its base in Tatabánya (NW Hungary), increasing headcount to nearly 200, with a HUF 1.1bn grant from the government.
Mr Szijjártó noted the need for similar investments, since the continuously growing automotive and battery production capacities also require local suppliers, so that the supply chains can be as short as possible.
Dutch companies represent the twelfth largest investment community in Hungary and bilateral trade was close to EUR 12bn last year, he said.
Mutual respect characterizes the cooperation between the two countries, with a few exceptions, and we are constantly looking for cooperation opportunities, he added.
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So, the government paid about 12% of the investment. But what about local competitors – do Hungarian metal surface treatment companies get 12 % paid by the government for their investments? I bet not.
I don’t think it’s a very good plan to provide such big, straightforward monetary support for foreign companies that, in the end, take profits out of the country.
The government should not interfere with the business market with such huge handouts taken from taxpayers who are already struggling to make the ends needs.
Just send all your investment plans to HIPA, and they will arrange the most generous support package in the EU!
https://hipa.hu/
And, if you invest enough, you can even get Politicians on speed dial to resolve any potential issues.
Lastly – unlike, say, Switzerland, we are not attracting high margin management companies (that would pay a lot of corporate tax). Any multinational will be running their local (usually) manufacturing operations on a “cost plus” basis, ensuring a low (but certain) amount of profit, subject to taxation. Also striking up IP / R&D credits, deductions, and other fun stuff to lower the tax burden!