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New home building permits in Hungary down 2.1 pc in first quarter of 2019!
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The number of home building permits issued in Hungary fell by 2.1 percent to 9,639 in the first quarter of 2019, data released by the Central Statistical Office (KSH) on Monday show.
The number of home building permits issued in Budapest fell by 9.4 percent to 3,656. The number issued in county seats and cities with over 50,000 residents decreased by 8.4 percent to 1,965. The number in other cities was down by 5.5 percent at 2,458, and the number in smaller communities jumped by 46.2 percent to 1,560.
Lawmakers lowered the VAT rate on home construction to 5 percent from 27 percent from 2016, but the rate is set to revert to the former level, which is Hungary’s main VAT rate, from the beginning of 2020. The preferential rate will still apply to homes that have a building permit on November 1, 2018. But these homes must be sold no later than December 31, 2023 for the exemption from the main VAT rate to apply.
Commenting on the data, Finance Minister Mihály Varga said
the state of the Hungarian economy and recent government measures would provide further momentum to the construction sector.