Construction VAT Down to 5% from 27%
It is actually happening! Finally they TAX on new built projects are cut to 5%, Which can be considered almost nothing.
The program has been lunched and now is on the go with the aim of new developments and construction in the City as it has been a hassle for Developers to proceed with the huge previous VAT of 27% but now things are changing.
Hungary’s recent cutting the VAT on construction from 27% to 5 will result in “another boom” in the materials market, pro-government daily Magyar Idők said.
The paper added, however, that a lack of skilled labor in construction could have negative impacts.
Győző Vidor, head of the national construction materials federation (Méasz), said 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.
Méasz 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, he said.
After all we will be witnessing a New ERA of constructions and developments in the City in no time.
The investors are and will be much interested in developing new complexes and as the real-estate is growing, the city soon will see a new face, a fresh looking and modern appearance.