The document was signed by Minister for National Economy Mihály Varga and Waberer’s President-CEO György Wáberer on Friday in Budapest.

At the signing ceremony, Mihály Varga stressed that after several Strategic Partnership Agreements had been concluded with large enterprises with headquarters all over the world, this time the Government is concluding an agreement with a company that was established in Hungary and has become multinational.

György Wáberer said that the Agreement is expected to result in higher competitiveness and further expansion for the company. The chief executive officer – who is also President of the Association of Hungarian Road Hauliers – urged the Government to provide tax breaks from the local business tax, weight tax and the tax on the transfer of property parallel to the introduction of the e-toll fee in July. Speaking about this issue, he also said that two years ago, during the flood in Eastern Hungary, hauliers made a pledge to the Government that they would purchase fuel in Hungary so that a higher share of fuel tax revenues could benefit flood victims. As a result, the so-called commercial fuel regulation was formulated which provides tax deductions of several billions of forints a year for road hauliers provided they purchase their fuel in Hungary and thus boost fiscal revenues by some HUF 10bn.

As the President-CEO explained, tax breaks provided after the e-toll system is introduced will have similar advantages, as without these the e-toll fees – which the Government anticipates will add HUF 150bn to fiscal revenues – would place Hungarian hauliers at a disadvantage in comparison to their regional competitors. He also estimated that such tax incentives could total HUF 10-15bn-a-year. He reasoned that hauliers provide 6-8 percent of Hungarian GDP, and this sector has quadrupled since the EU accession. Even during the crisis, he added, the sector had increased by 2-3 percent annually.

Among the Government’s economic policy measures, Mihály Varga highlighted the decrease of the corporate tax rate to 10 percent for enterprises with an annual revenues below HUF 500 million and the cutting of red tape as well as steps to improve the labour prospects of the older generation, young career-starters and mothers with small children. He also said that in the upcoming EU fiscal period the Government will spend 60 percent of available funding on economic development.

Mihály Varga pointed out that Waberer’s pays HUF 6bn in taxes and employs 1700 people. He also agreed that Governments in emerging countries must support the training of truck drivers and assist them in obtaining an international driving license, thus helping them find employment.

(Ministry for National Economy)