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Staff of Reuters Read for 2 minutes BUDAPEST, Hungary (Reuters) – Hungary is to impose export restrictions on building supplies starting in October to help control inflation in the sector, according to Prime Minister Viktor Orban. PHOTO FROM THE FILE: On the first day of the European Union summit, Hungary’s Prime Minister Viktor Orban addresses the media at The European Council Building in Brussels, Belgium, on June 24, 2021. Pool/John Thys courtesy of REUTERS/File Photo Surging raw material prices, Orban warned on Tuesday, risked jeopardizing a program of 3 million forint ($10,000) home remodeling incentives for families, and that his government would have to intervene. “We have decided to introduce export limits as of October,” Orban said on Friday on public radio. Some of the price increases were due to increased exports of basic materials like wood and steel, according to Orban, who will face a difficult parliamentary election next year for the first time since assuming office in 2010. Such an export embargo would need to be approved by EU officials in Brussels, with whom the Hungarian leader has had disagreements on a number of subjects, including immigration, minority rights, and the rule of law. He stated that his administration will take additional steps, such as export notifications, and that Budapest was attempting to gain pre-emption rights on construction supplies. “We will do everything we can to keep these commodities crucial to Hungary’s construction industry,” Orban stated. Orban further stated that “excess profits” earned on some construction products, including as gravel, would be taxed at a rate of 90%. He said the tax would be imposed on prices beyond a specific threshold, which he did not specify, and that it may also be imposed on other construction supplies. Orban also stated that mining concession holders must begin production within a year or face having their permits revoked. Orban has offered a $2 billion tax rebate to families if the economy grows at a rate of more than 5.5 percent this year. In a recent Reuters survey, analysts predicted 6.6 percent growth in 2021. 1 forint Equals 296.22 forints Gergely Szakacs contributed reporting, while Jacqueline Wong and John Stonestreet edited the piece./nRead More

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