Opposition DK slams raising VAT on new homes

The leftist Democratic Coalition has proposed that the government should drop plans to reintroduce a 27 percent VAT on new homes in 2020, and suggested that the VAT should be kept at the current, preferential 5 percent rate.

Csaba Molnár, the managing deputy leader of the party, told a press conference on Wednesday that the government should assist young people in purchasing their first homes, and noted that “the European Union has nothing to do with the VAT hike, the government’s move is not motivated by any external pressure”.

He added that though the EU recommends a uniform VAT, it allows for preferential rates for home construction, renewal or reconstruction.

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Source: MTI