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Special economic zone provisions donʼt apply to capital, Gulyás says

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Provisions in a bill submitted to lawmakers by the government that would cede jurisdiction over big investments in special economic zones to county councils do not apply to the capital or cities with county seat rights, Gergely Gulyás, the head of the Prime Ministerʼs Office said according to a report by state news wire MTI.

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Gulyás explained that the bill cedes jurisdiction to the county council from the local council in areas where the county councilʼs scope of power already reaches, thus the provisions do not apply "in any manner" to the capital or to cities with county seat rights.

Cities with county seat rights include both county seats and cities with populations over 50,000.

Gulyás also clarified that the bill would not apply to past investments, only to new ones.

The bill would redirect tax revenue from the special economic zones to county councils which can put it "to purposeful use to support the development and operation of communities in the whole area of the county, especially in those affected by the investment," according to the billʼs authors.

Gulyás said that allowing small communities exclusive access to tax revenue generated by big companiesʼ investments in the past had been "a bad practice".

The bill would set the minimum investment threshold necessary for establishing a special economic zone at HUF 5 billion.

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