Economy
Hungarian Trade Association asks President not to countersign anti-retail law
A number of legislation has been made recently that exert a substantial effect on local retail chains. The supervision fee for food retail chains is to be raised fifteen-fold on average, but the advertising tax also puts a greater burden on these chains. The association also noted that discount stores, supermarkets and hypermarkets will no longer be allowed to be built on world heritage sites and the existing ones will also need to close down within a year.
Lawmakers approved a bill on Tuesday which stipulates that from 2018 food retail chains with annual revenues of over HUF 50 bn may not conduct retail activity of fast-moving consumer goods (FMCGs) if they incur losses in two consecutive years.
The ban to build retail stores larger than 400 square metres, a measure dubbed as ‘mall ban’ or ‘plaza stop’, was also extended yesterday. The moratorium came into effect on 1 January 2012 and would have stayed in effect until the end of this year.
These measures urged the National Trade Association to turn to the President of the Republic, asking János Áder not to sign the law amendments, arguing that these measures put the entire Hungarian agribusiness at risk.
Lawmakers approved a bill on Tuesday which stipulates that from 2018 food retail chains with annual revenues of over HUF 50 bn may not conduct retail activity of fast-moving consumer goods (FMCGs) if they incur losses in two consecutive years.
The ban to build retail stores larger than 400 square metres, a measure dubbed as ‘mall ban’ or ‘plaza stop’, was also extended yesterday. The moratorium came into effect on 1 January 2012 and would have stayed in effect until the end of this year.
These measures urged the National Trade Association to turn to the President of the Republic, asking János Áder not to sign the law amendments, arguing that these measures put the entire Hungarian agribusiness at risk.
