Hungary to scrap utility tax exempt status of grid operators Mavir, FGSZ .

By bne IntelliNews November 27, 2012
Hungarian economy ministry has submitted to the parliament a draft bill that will eliminate the utility tax exempt status of power transmission system operator Mavir and gas transmission company FGSZ, MTI news agency informed. Mavir is owned by state-controlled MVM and FGSZ is a unit of MOL. According to the draft, despite the strategic significance of the two utilities, their owners are capable of paying the tax. Moreover, the principal of the proportional sharing of the public burden requires no exempts, reads the draft. The Hungarian parliament passed on November 20 the law that will levy a HUF 125 per metre tax on utility lines as of the beginning of 2013. The tax was originally set at HUF 100 per metre, but the amount was raised before the final vote to ensure it generates the targeted revenue of HUF 30bn. However, the government has not provided updated estimations for the revenues, including the tax payable by MOL's and MVM's units. Hungary's incumbent telecom Magyar Telekom said it will pay between HUF 9bn and HUF 11bn (ERU 39.1mn) a year in the tax.

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