Győr Mayor Publishes Controversial Audi Contract Amidst Financial Scrutiny
Pintér Bence reveals details of a previously hidden agreement, raising concerns about its impact on local financial obligations.
Pintér Bence, the Mayor of Győr, has announced the public disclosure of a secret contract between the municipality and Audi, a major automotive manufacturer, asserting that the details are now available for residents to read.
This move comes in light of legal obligations and a commitment to transparency, with the mayor highlighting the contract's potential to restrict the city's tax authority.
The contract, which dates back to the administration of former mayor Zsolt Borkai, has remained undisclosed since its inception in 2010. Mayor Pintér expressed concern over the continued secrecy, calling it 'astonishing' that such information has not been made public earlier.
He ordered a legal examination led by Deputy Clerk János Kálmán, which revealed that significant portions of the contract should be available according to Hungarian law.
As part of his announcement, Pintér criticized the financial implications of the contract, stating that it has resulted in substantial tax deductions from the city’s income, particularly the so-called solidarity contributions made to the central government.
Since the introduction of this tax, the state has not adjusted its calculation to account for Győr's actual business tax rate, which stands at 1.6%, contrary to the assumed rate of 2%.
He suggested that this miscalculation has resulted in an unfair financial burden on the city.
The mayor outlined the increasing financial demands placed on Győr, indicating that this year, the city's contributions would amount to 15 billion HUF, marking a significant rise from previous years.
He asserted that by autumn, Győr may become a net contributor to the national budget, inverting the typical financial flow between local and state government.
Additionally, Pintér pointed out that the Borkai administration committed to further reducing business taxes if similar reductions were enacted in competitor cities, such as Kecskemét, Debrecen, and Szeged.
This situation could complicate the city's financial landscape, risking decreased revenue from business taxes even as the city must fulfill its obligations to the national government.
In a bid for transparency, Pintér encouraged residents to access the contract's public documents through the city’s official website or through the transparency office in order to form their own opinions on the matter.
The mayor also noted that the automotive sector has been facing challenges due to increased tariffs imposed by the U.S. government during Donald Trump’s administration.
The local Audi plant has reported difficulties resulting from these trade policies, amplifying the financial concerns for the city’s economy.
This move comes in light of legal obligations and a commitment to transparency, with the mayor highlighting the contract's potential to restrict the city's tax authority.
The contract, which dates back to the administration of former mayor Zsolt Borkai, has remained undisclosed since its inception in 2010. Mayor Pintér expressed concern over the continued secrecy, calling it 'astonishing' that such information has not been made public earlier.
He ordered a legal examination led by Deputy Clerk János Kálmán, which revealed that significant portions of the contract should be available according to Hungarian law.
As part of his announcement, Pintér criticized the financial implications of the contract, stating that it has resulted in substantial tax deductions from the city’s income, particularly the so-called solidarity contributions made to the central government.
Since the introduction of this tax, the state has not adjusted its calculation to account for Győr's actual business tax rate, which stands at 1.6%, contrary to the assumed rate of 2%.
He suggested that this miscalculation has resulted in an unfair financial burden on the city.
The mayor outlined the increasing financial demands placed on Győr, indicating that this year, the city's contributions would amount to 15 billion HUF, marking a significant rise from previous years.
He asserted that by autumn, Győr may become a net contributor to the national budget, inverting the typical financial flow between local and state government.
Additionally, Pintér pointed out that the Borkai administration committed to further reducing business taxes if similar reductions were enacted in competitor cities, such as Kecskemét, Debrecen, and Szeged.
This situation could complicate the city's financial landscape, risking decreased revenue from business taxes even as the city must fulfill its obligations to the national government.
In a bid for transparency, Pintér encouraged residents to access the contract's public documents through the city’s official website or through the transparency office in order to form their own opinions on the matter.
The mayor also noted that the automotive sector has been facing challenges due to increased tariffs imposed by the U.S. government during Donald Trump’s administration.
The local Audi plant has reported difficulties resulting from these trade policies, amplifying the financial concerns for the city’s economy.
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