Construction industry presses govʼt for supply-side support
Lászlo Koji, the head of national building industry association ÉVOSZ, acknowledged that the reduction in the home construction VAT rate to 5% from the start of next year will boost market demand, but he told Hungarian news agency MTI that supply-side incentives, such as support for investments and training, are also necessary.
Koji noted that 108,000 of the 114,000 construction companies in Hungary employ fewer than five people, and these microbusinesses need such support.
He said the second wave of the pandemic had delayed the completion of 2,000-2,500 homes until next year, reducing the total for this year to no more than 23,000.
Koji added that ÉVOSZ had proposed at its latest meeting with government representatives giving construction companies a six-month grace period to comply with energy efficiency requirements coming into force from the start of next year. It also recommended making payment of wages that are at least 70% of the national average a condition for biding in public procurement tenders, he added.
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