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ÉVOSZ presses for compensatory measures after home building vat rise

National building association ÉVOSZ is urging the government to introduce new measures to compensate for phasing out the preferential VAT rate on home construction. In a statement released on Monday, ÉVOSZ said the pickup in home construction would end if the reduced VAT rate is not replaced with other preferences. The government should give equal treatment to home construction and home renovation with any such
preferences, the association added. Lawmakers lowered the VAT rate on home construction to 5% from 27% 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. ÉVOSZ proposed in the statement that the government extend VAT refund eligibility to completed homes, home purchases and new home construction. It also proposed allowing VAT refunds up to 30%, or a maximum of 3 million forints, for home renovation, with the presentation of accurate documentation on the value of the project. ÉVOSZ suggested the government could provide first-time home buyers with a 3% interest subsidy. The association pressed for the government to come up with a programme to manage the problem of the some 350,000 vacant homes in Hungary.