Budapest, September 27 (MTI) – A new phase driven by research, development and innovation needs to take hold in Hungary with a view to attracting industries to its next destination in economic development, Péter Szijjártó, the foreign minister, told a conference on Tuesday.

The government is committed to helping companies adopt new technologies and build a higher value-added economy. It will introduce new incentives for businesses promoting investments early next year, he said.

“The world economy is going through major changes,” he said. “We live in the digital age, which means that many companies are undergoing major technological changes.”

“This is why, from next year, there will be new elements in the Hungarian investment-incentives system which will primarily support companies operating in Hungary that carry out technological transformations so that they can remain competitive amid these new circumstances…” he said.

From January 1 on, new tax incentives will be introduced, Szijjártó said. In return for lower taxes companies will be able to contribute to commuting expenses or accommodation cost of their workers, promoting labour mobility in the country, he said.

As for R+D, companies will have an opportunity to write off against tax “practically twice as much” as they spend on such projects, Szijjártó said.

On the subject of the government’s signing strategic partnership agreements with large companies, Szijjártó said that businesses in the programme have now created 13,000 new jobs and invested a total of 1,500 billion forints (EUR 4.9bn) in Hungary since those contracts were signed.

The conference, dubbed Business Meets Government, has been organised for the second time by national investment agency HIPA and the American Chamber of Commerce.

Photo: MTI

Source: MTI

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