Photo credits @ AdobeStock/jdarius

Hungary to introduce minimum service fee for logistics and limit subcontractors to 1

Hungary plans to introduce minimum service charges in the logistics sector to increase the competitiveness of Hungarian companies and to minimise the number of subcontractors to 1 for any given transport or logistics activity.

You can read this article in 3 minutes

As a result of the dialogue with representatives of the transport industry, the Hungarian government has decided to introduce new measures to “strengthen the players in the strategically important logistics sector and thus further increase the competitiveness of companies operating in the Hungarian freight transport sector”, the ministry announced last week.

As part of the measures to increase competitiveness, the haulier hired by the shipper will be allowed to involve a maximum of one subcontractor in its activity.

In addition, minimum service charges are going to be introduced in the Hungarian logistics and transport sector, which will be of three types:

  • a minimum service charge, which is three times the road toll for the distance travelled,
  • a loading and pallet sorting fee of at least HUF 10,795 (approx 28 euros) gross,
  • and a downtime charge of at least HUF 8,636 (approx 22 euros) gross.

The government argues that introducing minimum charges is intended to provide relief to businesses that provide services on fair terms but are forced to compete with other companies offering services at low prices to gain market share.

The third part of the new measures is an almost threefold increase in the refundable amount of excise duty on diesel. In return, the government is asking Hungarian hauliers to fill up their vehicles in Hungary.

With these measures, the Hungarian government aims to create a more transparent and comprehensible situation in the sector, “in favour of those who carry out their work reliably and honestly”, and also to ensure that hauliers can “obtain fuel for domestic goods transport at a competitive price, even by European standards”.

In this way, it will be possible to ensure the full and high-quality service of the economy and industrial production, as well as the smooth running of trade, which is an essential condition for the successful functioning of the national economy, the GFM stressed.

Recently, the Hungarian government identified the logistics sector as one of the foundations of economic growth, with nearly 2,500 companies operating in the sector. As a key part of the national economy, it employs more than 280,000 people and generates 5 per cent of GDP. In line with new economic targets, Hungary aims to increase this to 10 per cent by 2030.

The ministry’s decisions are not yet effective – the planned changes will come into force as an amendment to the Government Decree on Road Transport Contracts. However, the next step will be to start the consultation process, after which the amendment and promulgation of the decree may follow.

It is important to note that these new measures will only apply to Hungarian companies.

Tags