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CSOK subsidy recipients to reclaim VAT on new home purchases

Hungarians awarded CSOK subsidies will be allowed to reclaim VAT on new home purchases from the start of next year, Minister for Families Katalin Novák said on public radio on Sunday, according to a report by state news wire MTI.

Novák told Kossuth Radio the measure would save recipients of Home Purchase Subsidy Scheme for Families (CSOK) funding HUF 1.5 million on the purchase of a HUF 30 mln home.

Novák revealed the measure days after the government decided to reintroduce a preferential 5% VAT rate on home construction.

The VAT rate on home construction had been lowered from 27% to 5% for the period 2016-2019, supporting a sharp increase in home builds, although the numbers still fell short of those before the 2008 global economic and financial crisis.