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May 14, 2020

Government submits bill on "special economic zones"

A bill on “special economic zones” is set to boost the rapid and effective implementation of major investment projects and regional infrastructure development projects.

 

The Prime Minister’s Office has revealed that the government has submitted a bill on “special economic zones” to boost the rapid and effective implementation of major investment projects and regional infrastructure development projects.

The projects in question must have a value of at least HUF 5 billion (EUR 14.2m) and an impact on the economy and employment not only on local but on a regional level. It would therefore be fairer if several localities benefit from the related tax revenues.

According to MTI, in addition to promoting investment, the bill enables a more balanced distribution of resources within counties. Certain tax revenues from special economic zones can be used by the county governments for financing regional development and supporting towns and villages.

The change will not affect the current ratio of local and central taxes, and will not apply to investments in Budapest, districts of the capital and cities of county seat status. The central government will not draw away any resources from the municipalities.