ADVERTISEMENT

Parlʼt approves legislation on special economic zones

Banking

Image by Shutterstock.com

Parliament passed legislation on Tuesday allowing the establishment of special economic zones with the aim of expediting investments and related infrastructure developments, state news wire MTI.

Image by Shutterstock.com

Provisions in the legislation requiring a two-thirds majority to pass were approved with a vote of 134 for, 59 against and no abstentions. Provisions requiring a simple majority were passed with a vote of 135 for, 59 against, and no abstentions.

The legislation allows the government to designate the zones at sites of investments worth HUF 5 billion or more with the aim of supporting the quick and efficient implementation of those investments and necessary infrastructure upgrades.

It also allows tax revenue from the areas to be rechannelled from local councils to the county level.

The bill, tabled by the government, had come under fire for diverting that tax revenue, but the government argued that the measure allows a more proportionate allocation of resources among all communities impacted by such investments.

The government said establishing the zones will support the economic recovery from the coronavirus pandemic, create new jobs and preserve existing ones.

The final draft of the bill was modified to clarify that the special economic zones may not be designated in the capital, county seats, or cities with populations of over 50,000.

The government earlier designated a special economic zone in the municipality of Göd, on the outskirts of Budapest, where Koreaʼs Samsung plan to build an EV battery plant. The designation was made in a decree issued while Hungaryʼs government exercised state of emergency powers because of the coronavirus pandemic.

According to a report by news site Index.hu, in April, Göd Mayor Csaba Balogh called the decision a "death sentence". The mayor, a member of opposition party Momentum, argued that the city will be dispossessed of tax revenues, adding that locals will have no influence over the nature, location, and environmental impact of projects built in the special zone.

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.