The decision means that the VAT remains 5% on flats up to 150m2 and on houses up to 300m2 until December 31, 2026.

The reduced tax rate can be applied until the end of 2030 if the building permit was obtained by the end of 2026.

According to Varga, the budget has the necessary resources for tax reduction, so the decision will not jeopardise the deficit target.

The construction industry accounts for 6% of economic output and employs nearly 400,000 people, which is why the government pays special attention to the support and development of the sector, said Varga.

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