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DK SLAMS RAISING VAT ON NEW HOMES

The leftist Democratic Coalition has proposed that the government should drop plans to reintroduce a 27% VAT on new homes in 2020, and suggested that the VAT should be kept at the current, preferential 5% rate.
Csaba Molnár, the managing deputy leader of the party, said the government should assist young people in purchasing their first homes. “The European Union has nothing to do with the VAT hike, the government’s move is not motivated by any external pressure”. Though the EU recommends a uniform
VAT, it allows for preferential rates for home construction, renewal or reconstruction.