Hungary: Government wants no circular debt

Competition

The government is dedicated to curb the rate of circular debt in the economy by regulating public procurement.

The tax package to be submitted tomorrow includes the tasks and obligations of those involved in public procurement and would make it impossible for businesses to be paid without paying off their debts.

According to the proposal a contractor could only pay its sub-contractor over Ft 200,000 ( about $1180)monthly if the sub-contractor can prove it has no public dues and is not under liquidation or bankruptcy proceedings.

Businesses can either apply to the tax agency for confirmation or register at a monthly updated public database. When the system was introduced in March with a Ft 100,000 limit it was harshly criticized. (Napi Gazdaság)

ADVERTISEMENT

Farm, food industry confidence improves slightly in Q2 Analysis

Farm, food industry confidence improves slightly in Q2

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.