Hungary Imposes Stiff Tax to Control Rising Construction Costs

Hungary’s large producers of sand, gravel, and cement must pay a 90% tax from the portion of profits they make on sales above the price set by the government, according to an official decree that took effect Friday.

The new tax is part of the government’s effort to stem sharp increases in prices of construction materials. The price of concrete, for example, jumped 16% between January and May, the National Federation of Hungarian Building Contractors said.

Prices above which the 90% tax applies range from 700 Hungarian forint ($2.34) per ton of graded sand to 20,000 forint per ...