Low taxes spur Coca-Cola investments

Banking

Hungaryʼs low taxes have prompted Coca-Cola to make record investments at its bottling plant on the outskirts of Budapest this year, and capital expenditure is set to climb further next year, the head of Coca-Cola HBC Magyarország said in an interview in Mondayʼs issue of business daily Világgazdaság. 

"The lowest corporate tax rate in Europe and the gradual reduction in the payroll tax clearly show the Hungarian governmentʼs commitment to increasing domestic production capacity and introducing innovative technologies," said Country General Manager Minas Agelidis.

"In reaction to the favorable tax environment, our company spent a record amount on investments this year, putting some HUF 6 billion into developments. And I could perhaps reveal that we want to decide on another record amount for next year," he added.

Agelidis revealed that Coca-Cola HBC Magyarországʼs exports have tripled over the past few years.

"Today we export carbonated beverages, fruit juices and mineral water to 25 countries in Europe, from Malta to Iceland. The local unit has grown to become the biggest exporter in the group and has a presence in markets such as Russia, Italy and Poland," he said.

Agelidis also noted that domestic business partners supply almost two-thirds of the unitʼs basic ingredients.

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