Employers can assist their employees to repay mortgages by providing HUF 5 million as tax-free fringe benefit within five years, Minister for National Economy Mihály Varga said at the opening of Construma, the international building trade exhibition, in Budapest.
The debt of Hungarian families average HUF 7 million, in comparison to which the fringe benefit of HUF 5 million is a significant amount, he stressed. Those who are building a house or purchasing a new or used home can utilize this kind of employer fringe benefit for up to 30 percent of construction or purchasing costs, which can provide tax-free income of as much as HUF 80 thousand per month, the Minister stated.
Mihály Varga announced that a large-scale modernization programme for private buildings will be launched in the near future. The reason for this is that 70 percent of homes are of low energy efficiency. The Government will utilize EU and domestic resources as well, he added.
The construction sector increased last year by 10 percent, while in January this year it expanded by 15.9 percent, year-on-year. This growth, the Minister said, was mainly attributable to road and railway construction as well as to flood protection projects and the Government is aiming to make this positive trend reversal persistent.
Mihály Varga emphasised that although the number of avaialable properties is sufficient in Hungary, quality must be improved by building new units. As, due to Government measures, more money is left at families and state subsidies are also higher, we can expect the rebound of new home construction, he said.
Hungexpo CEO Gábor Ganczer pointed out that this year’s Construma, with 510 exhibitors from 14 countries, focuses on green energy.
The Construma awards were this year presented by Mihály Varga, who honoured Wolf System Kft, Rockwool Hungary Kft, Öko Tech Kft and Oventrop GmbH & Co. KG for their innovative products.
(Ministry for National Economy)
