Hungary plans to restrict exports of construction materials -PM | Invest News
BUDAPEST (Reuters) – Hungary plans to impose restrictions on the export of building materials from October to help curb inflation in the sector, Prime Minister Viktor Orban said on Friday.
Orban said on Tuesday that soaring commodity prices risked undermining a 3 million forint ($ 10,000) program of home improvement subsidies for families, and that his government should step in.
“As early as October, we decided to impose export restrictions,” Orban told state radio on Friday.
Some of the price increases were due to increased exports of basic materials such as timber and steel, added Orban, who will likely face next year what will likely be his first competitive parliamentary election since his election. started in 2010.
Such an export ban would require approval from EU authorities in Brussels, with whom the Hungarian leader clashed on a range of issues, including immigration, minority rights and the rule of law.
He said his government would launch other related measures, including export notifications, and that Budapest was also trying to secure pre-emptive rights on construction materials.
“We will try to keep these vital materials for the construction sector in Hungary,” said Orban.
Orban said his government would also levy a 90% tax on “extra profits” made on certain building materials, including gravel.
He said the tax would apply to prices above a certain level he did not specify and could also be levied on other building materials.
Orban also said companies with mining concessions are expected to start production within a year or have their permits withdrawn.
Orban has pledged a $ 2 billion income tax refund for families based on economic growth above 5.5% this year. Analysts in a Reuters poll last month predicted 6.6% growth in 2021.
(Reporting by Gergely Szakacs; Editing by Jacqueline Wong and John Stonestreet)
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