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The head of the Prime Minister’s Office, the prime minister’s chief of staff, received another state office in the Hungarian Gazette published on Friday: Antal Rogán can also perform ministerial tasks related to concessionaires. A National Office of Concessions will be installed, from where it will also decide on the operation of traffickers or casinos.
The government has redistributed the responsibilities of ministers and transferred control of concession rights to the Prime Minister’s Office. Said permits and concessions granted by the state or local government, on the basis of which it transfers the right to carry out the activities specified by law in a remunerated contract of fixed duration, granting the right holder a market monopoly limited in time and territory. In essence, therefore, the state dictates who can operate traffic and casinos, but in the same way, the state also allows, for example, oil extraction for certain actors.
In the Hungarian Gazette published on Friday, an organization, the National Concessions Office, is also called to this task. But it is not yet known exactly what form it will take. The government decree only stipulates that the office is headed by a president who can have several deputies at the same time. It has also become clear that Antal Rogán can now oversee this as minister.
All that has been clarified about the professional tasks of the Office is that
- collects and organizes information on state concession activities, national and international practices,
- prepares economic, social and legal impact studies and decision-making documents on state concession activities
- proposes the transfer of the temporary right of the Prime Minister’s Chief of Staff to carry out certain exclusive state economic activities under a concession contract,
- develops and operates a unified monitoring methodology, procedure, and system for state concession activities and concession procedures
In terms of concession rights, the 2013 traffic case and casino operations allocation became the best known. The transformation of the latter has already started in the recent period: in June, the government declared a priority of the national economy that it can operate casinos in Hungary. The bill that supports the 2021 budget will also fundamentally modify the Concessions Law and the Gaming Organization Law. Instead of the 5 above, there may be 7 casinos that the government agrees with.
Among the concessions, this is the largest business: in 2018, the companies generated a total of HUF 38.7 billion in revenue, their profits exceeded HUF 11 billion, and paid just HUF 4 billion in gambling taxes. This is a huge turnover of 6 billion more than in the previous year, and its profit after tax increased by almost 3 billion HUF. A total of HUF 3 billion 966 million was taxed, while in 2017 the payment was still HUF 4 billion 71 million.
Antal Rogán’s ministry thus acquired new functions, although his portfolio already supervised the National Communications Office in charge of government announcements and announcements, the Hungarian Tourism Agency and the National Communications and Informatics Council created in March last year to advise the government. and Digital Government Agency Ltd., also established at the time. The politician is also responsible for overseeing IT acquisitions, as well as the Film Commissioner.
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