WORLD TRADE
ORGANIZATIONG/SCM/N/16/HUN
G/SCM/N/25/HUNG/SCM/N/38/HUN
8 May 2002
(02-2581)
Committee on Subsidies and
Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full and Updating Notifications Pursuant to Article XVI:1 of the
GATT 1994 and Article 25 of the Agreement on Subsidies and
Countervailing Measures
HUNGARY
The following communication, dated 17 April 2002, has been received from the Permanent
Mission of Hungary.
_______________
INTRODUCTION
Hungary’s notification contains both industrial and agricultural assistance programmes for the
implementation of which there was legislative authority in 1996, irrespective of whether they became
operative or not.  Assistance programmes for which the legislative authority has expired, but there
were payments in 1996 are also included.
The fact that an assistance programme has been notified does not, in accordance with
Article 25.7 of the Agreement on Subsidies and Countervailing Measures, prejudge its legal status
under GATT 1994 or this Agreement, nor does it prejudge its effects under the Agreement on the
nature of the measure itself.  Furthermore this does not imply in any way that any of the measures
notified, wholly or in part constitutes a specific subsidy.
In the case of previously notified programmes, only changes that occurred therein during the
period covered by this notification are indicated.  Newly notified programmes are reported in full,
pursuant to the agreed format of G/SCM/6.G/SCM/N/16/HUN
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1996
TABLE OF CONTENTS
Page
1. EXPORT ENHANCEME NT PROGRA MMES.......................................................................11
1.1. Export enhancement programme for agricultural and fishery products ....................11
1.2. Export enhancement programme for apples harvested in 1996...................................11
1.3. Export enhancement programme for pig for slaughter ................................................12
2. PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN AGRICULTURAL
PRODUCTS....................................................................................................................... ..........13
2.1. Support programme for beef for slaughter ....................................................................13
2.1.1 State purchase of beef for slaughter at guaranteed price..............................................13
2.2. Support programme for pig for slaughter......................................................................142.2.1. State purchase of pig for slaughter at guaranteed price ...............................................14
2.3. Support programme of maize for feeding purposes ......................................................14
2.3.1. State purchase of maize for feeding purposes at guaranteed price ..............................14
2.4. Support programme for wheat for human consumption ..............................................15
2.4.1. State purchase of wheat for human consumption harvested in 1996 at guaranteed
price.......................................................................................................................... ..........15
2.5. Support programmes for milk.........................................................................................162.5.1. Regulation of the ma rket for co w milk ...........................................................................16
2.5.2. Quality-linked support for cow milk...............................................................................16
2.6. Support programme for apples .......................................................................................17
2.6.1. Intervention assistance to the processing of apples in bulk harvested in 1996............17
3. ASSISTANCE PROGRAMMES FINANCED PREVIOUSLY FROM THE VARIOUS
AGRICULTURA L FUNDS ........................................................................................................18
3.1. Assistance to stock-breeding ............................................................................................18
3.2. Assistance to fi shery activities..........................................................................................1 8
3.3. Assistance to agriculture and forestry ............................................................................19
3.3.1. Assistance to the preservation or development of biological bases and the
modernisation of related system of qualification ...........................................................19
3.3.1.1. Assistance to geneti cal development.........................................................................19
3.3.1.2. Assistance to the purchase and changes of breeding animals and to the expansion of
their stocks ................................................................................................................20
3.3.2. Assistance to the utilisation of arable land in disadvantaged producing areas...........20
3.3.3. Assistance to investment in, and development of agricultural production and food
processing ..................................................................................................................... .....21
3.3.4. Assistance to mending, cultivating and pr eserving the quality and the quantity of
forests ........................................................................................................................ .........21
3.3.5. Assistance to the establishment of sylviculturist and co-operative associations..........223.4. Assistance to game husbandry.........................................................................................22
3.5. Assistance to the prot ection of arable land.....................................................................23
3.6. Assistance to the construction and the renovation of buildings....................................23
3.7. Assistance to the establishment of vineyards and orchards..........................................25
3.8. Regional assistance programme ......................................................................................26
3.9. Assistance to foster co -operative integration..................................................................27
3.10. Assistance to the purchase of individual shares of members of co-operatives ............28G/SCM/N/16/HUN
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3.11. Assistance to the realisation of certa in goals of the agr icultural policy .......................28
3.12. Agricultural resea rch programmes.................................................................................29
4. AGRICULTURAL SUBSIDY PROGRAMMES ESTABLISHED BY THE
GOVERNM ENT ..................................................................................................................... ....30
4.1. Finance subsidies.......................................................................................................... .....30
4.1.1. Assistance given to further agricultural activities .........................................................30
4.1.2. Government guarantee..................................................................................................... 31
4.1.3-4.1.4.Assistance to the purchase and leasing of agricultural machinery ..............................31
4.1.5. Assistance to members of co-o peratives in acquiring loans ..........................................32
4.2. Assistance to the production of certain agricultural products......................................334.3. Assistance to the restructuring  of the agricultural sector .............................................33
4.4. Assistance to soil melioration and to irrigation investment ..........................................34
4.5. Assistance for planting and restru cturing forests and afforestation............................34
4.6. Payments for relief from environm ental degradation of forests ..................................35
4.7. Refund of the consumption tax on diesel fuel.................................................................364.8. Assistance to the participation in crop insurance schemes ...........................................36
4.9. Payments for relief from  natural di sasters.....................................................................37
4.9.1. Payments for relief from natural disasters affecting plant cultivation in 1995...........37
4.9.2. Payments for relief from  fireblight disease.....................................................................38
4.10. Assistance to the organisation of vine-growing communities .......................................394.11. Assistance to the utilisation of advisory and extension services ...................................40
4.12. Assistance to the "Borsod-Abaúj-Zemplén" region ......................................................41
4.13. Assistance to the maintenance of recreational and park woods ...................................42
4.14. Assistance to tobacco harvested in 1995 .........................................................................42
5. CORPORATE TAX CONCESSIONS ......................................................................................43
5.1. Corporate tax concession for companies with foreign participation............................43
5.2. Tax concessions granted to assist structural adaptation ...............................................44
5.2.1. Tax concession to promote export-oriented product development ..............................44
5.2.2. Tax concession to promote investments in production of exportable goods................44
5.2.3. Tax concession for short term credit financing export claims......................................44
5.2.4. Tax concession for bank credits provided for investment financing............................45
5.3. Tax benefit for the pu rchase of ma chines.......................................................................45
5.4.1. Investment-related tax concessions .................................................................................46
5.4.2. Tax concession to off-shore comp anies ...........................................................................46
5.5. Tax concession for dividend reinvested in Hungary by foreign shareholders.............46
5.6. Tax concession in entrepreneurial zones ........................................................................47
6. CENTRAL FUND FOR TECH NICAL DEVELO PMENT ....................................................48
7. TERRITORIAL DEV ELOPMENT FUND ..............................................................................49
8. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DE VELOPMENT..............49
9. ENVIRONMENT PRO TECTION FUND ................................................................................50
10. MINING CONVERS ION PROGRAMME...............................................................................51G/SCM/N/16/HUN
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11. METALLURGY CONVERS ION PROGRAMME .................................................................51
12. ASSISTANCE TO PU BLIC RAILWAYS................................................................................51
13. SUPPORT FOR JOB-CREAT ING INVEST MENTS .............................................................52
14. ASSISTANCE TO URANI UM-ORE MINING........................................................................52
1997
1. EXPORT ENHANCEME NT PROGRA MMES.......................................................................55
1.1. Export enhancement programme for agricultural products ........................................55
1.2. Export enhancement programme for apples harvested in 1996...................................55
1.3. Export enhancement programme for pig for slaughter ................................................56
1.4. Export enhancement programme for potatoes for human consumption ....................56
1.5. Intervention assistance of financing surplus stocks of dried onion ..............................57
1.6. Assistance to the export of  seasonal milk surplus ..........................................................58
2. PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN AGRICULTURAL
PRODUCTS....................................................................................................................... ..........59
2.1. Support programme for beef for slaughter ....................................................................59
2.1.1. State purchase of beef for slaughter at guaranteed price..............................................59
2.2. Support programmes for pig for slaughter ....................................................................59
2.2.1. State purchase of pig for slaughter at guaranteed price ...............................................592.2.2. Intervention support for the quality production of pig for slaughter..........................60
2.3. Support programme for maize for feeding purposes ....................................................62
2.3.1. State purchase of maize for feeding purposes at guaranteed price ..............................62
2.3.2. Intervention purchase of maize for feeding purposes to eliminate difficulties on the
market......................................................................................................................... .......62
2.4. Support programme for wheat for human consumption ..............................................63
2.4.1. State purchase of wheat for human consumption harvested in 1997 at guaranteed
price.......................................................................................................................... ..........63
2.5. Support programmes for milk.........................................................................................64
2.5.1 Regulation of the ma rket for co w milk ...........................................................................64
2.5.2. Quality-linked support for cow milk...............................................................................64
2.5.3. Assistance to the purchase of qualified sheep milk........................................................65
2.6. Support programmes for apple .......................................................................................66
2.6.1. Intervention assistance to the processing for apple in bulk harvested in 1996 ...........66
2.6.2. Intervention assistance to the processing for apples in bulk harvested in 1997..........672.7. Support programme for wine ..........................................................................................68
2.7.1. Intervention assistance for the distillati on of wine produced in 1997 in order to
reduce stocks.................................................................................................................. ....68
3. ASSISTANCE PROGRAMMES FINANCED PREVIOUSLY FROM THE VARIOUS
AGRICULTURA L FUNDS ........................................................................................................69
3.1. Assistance to stock-breeding ............................................................................................69
3.2. Assistance to fi shery activities..........................................................................................6 9
3.3. Assistance to agriculture and forestry ............................................................................70G/SCM/N/16/HUN
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3.3.1 Assistance to the preservation or development of biological bases and the
modernisation of related system of qualification ...........................................................70
3.3.1.1 Assistance to genetical development .........................................................................70
3.3.1.2 . Assistance to the purchase and changes of breeding animals and to the  expansion
of their stocks ............................................................................................................70
3.3.2. Assistance to the utilisation of arable land in disadvantaged producing areas...........71
3.3.3. Assistance to investment in and develo pment of agricultural production and food
processing ..................................................................................................................... .....72
3.3.4. Assistance to mending, cultivating and preserving the quality and the  quantity of
forests ........................................................................................................................ .........72
3.3.5. Assistance to the establishment of sylviculturist and co-operative associations..........72
3.4. Assistance to game husbandry.........................................................................................73
3.5. Assistance to the prot ection of arable land.....................................................................74
3.6. Assistance to the construction and renovation of buildings..........................................74
3.7. Assistance to the establishment of vineyards and orchards..........................................753.8. Regional assistance programme ......................................................................................76
3.9. Assistance to foster co -operative integration..................................................................77
3.10. Assistance to the purchase of individual shares of members of co-operatives ............77
3.11. Assistance to the realisation of certa in goals of the agr icultural policy .......................78
3.12. Assistance to common ma rketing in agr iculture............................................................79
3.13. Agricultural resea rch programmes.................................................................................80
3.14. Assistance to the joint establishment of wholesale markets by producers and to
investments of joint sales or ganisations of producers....................................................81
4. AGRICULTURAL SUBSIDY PROGRAMMES ESTABLISHED BY THE
GOVERNM ENT ..................................................................................................................... ....82
4.1. Finance subsidies.......................................................................................................... .....82
4.1.1. Assistance given to further agricultural activities .........................................................82
4.1.2. Government guarantee..................................................................................................... 82
4.1.3-4.1.4 Assistance  to the purchase and leasing of agricultural machinery..............................83
4.1.5. Assistance to members of co-o peratives in acquiring loans ..........................................83
4.2. Assistance to the production of certain agricultural products......................................844.3. Assistance to the restructuring  of the agricultural sector .............................................84
4.4. Assistance to soil melioration and to irrigation investment ..........................................85
4.5. Assistance for planting and restru cturing forests and afforestation............................85
4.6. Payments for relief from environm ental degradation of forests ..................................86
4.7. Refund of the consumption tax on diesel fuel.................................................................864.8. Assistance to the participation in crop insurance schemes ...........................................87
4.9. Payments for relief from  natural di sasters.....................................................................88
4.9.1. Payments for relief from natural disasters affecting plant cultivation in 1995...........88
4.9.2. Payments for relief from  firelight disease.......................................................................89
4.10. Assistance to the organisation of wine-growing communities.......................................894.11. Assistance to the utilisation of advisory and extension services ...................................89
4.12. Assistance to the "Borsod-Abaúj-Zemplén" region ......................................................90
4.13. Assistance to the maintenance of recreational and park woods ...................................90
4.14.  Assistance to tobacco harvested in 1995 .........................................................................91
4.15. Assistance to potatoes harvested in 1996 ........................................................................914.16. Market intervention  relating to eggs...............................................................................92
4.17. Intervention support for quality production of game birds..........................................93
4.18. Assistance to bee keepers................................................................................................. .94G/SCM/N/16/HUN
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4.19. Assistance to the establishment of environmentally-friendly crop structure ..............95
4.20. Assistance to the transition to organic production ........................................................95
4.21. Assistance to the stabilisat ion of the cere als market......................................................96
4.22. Intervention assistance to producers of wh eat for feeding purposes for selling their
crop........................................................................................................................... ..........97
4.23. Assistance to the maintenance and deve lopment of the statistical data-bases of
producers’ counc ils............................................................................................................ 98
4.24. Assistance to the improveme nt of competitiveness ........................................................99
5. CORPORATE TAX CONCESSIONS ....................................................................................100
5.1. Corporate Tax concession for companies with foreign participation ........................1005.2. Tax concessions granted to assist structural adaptation .............................................100
5.2.1. Tax concession to promote export-oriented product development ............................100
5.2.2. Tax concession to promote investments in production of exportable goods..............101
5.2.3. Tax concession for short term credit financing export claims....................................101
5.2.4. Tax concession for bank credits provided for investment financing..........................1015.3. Tax concession in regions of high priority....................................................................102
5.4.1. Investment-related tax concessions ...............................................................................103
5.4.2. Concession to Off-shore Companies..............................................................................103
5.5. Tax concession for dividend reinvested in Hungary by foreign shareholders...........104
5.6. Tax concession in entrepreneurial zones ......................................................................1045.7 Tax Concession for Investments Exceeding HUF 1 Billion.........................................104
6. CENTRAL FUND FOR TECH NICAL DEVELO PMENT ..................................................105
7. TERRITORIAL DEV ELOPMENT FUND ............................................................................106
8. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT............106
9. ENVIRONMENT PRO TECTION FUND ..............................................................................107
10. MINING CONVERS ION PROGRAMME.............................................................................107
11. METALLURGY CONVERS ION PROGRAMME ...............................................................107
12. ASSISTANCE TO PU BLIC RAILWAYS..............................................................................108
13. SUPPORT FOR JOB-CREAT ING INVEST MENTS ...........................................................108
14. ASSISTANCE TO URANI UM-ORE MINING......................................................................108
15. TAX RELIEF RELATED TO  R AND D ACTIV ITIES........................................................109G/SCM/N/16/HUN
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1998
1. EXPORT ENHANCEME NT PROGRA MMES.....................................................................111
1.1. Export enhancement programme for agricultural products ......................................111
1.2. Export enhancement programme for apple harvested in 1996 ..................................112
1.3. Export enhancement programme for live pig ..............................................................112
1.4. Export enhancement programme for potatoes for human consumption ..................1131.5. Intervention assistance of financing surplus stocks of dried onion ............................113
1.6. Assistance to the export of  seasonal milk surplus ........................................................113
1.7. Export enhancement programme for certain pork and processed pork products ...114
1.8. Export enhancement programme for rabbit for slaughter.........................................114
1.9. Export enhancement programme for 500.000 tons of wheat for feeding purposes ..115
1.10. Export enhancement programme for wheat harvested in 1998..................................116
1.11. Export enhancement programme for milling  or EURO wheat .................................117
1.12. Export enhancement programme for table, regional and quality white wine in
barrels ........................................................................................................................ ......118
1.13. Export enhancement programme for mushroom ........................................................119
1.14. Export enhancement programme for certain canned meat  and meat products ......1191.15. Additional export assistan ce for certain duck meat ....................................................120
2. PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN AGRICULTURAL
PRODUCTS....................................................................................................................... ........121
2.1. Support programmes for beef for slaughter.................................................................121
2.1.1. State purchase of beef for slaughter at guaranteed price............................................1212.1.2. Intervention support for the quality production of beef for slaughter ......................122
2.2. Support programmes for pig for slaughter ..................................................................124
2.2.1. State purchase of pig for slaughter at guaranteed price .............................................124
2.2.2. Intervention support for the quality production of pig for slaughter........................125
2.3. Support programme  for maize for feeding purposes .................................................1272.3.1. State purchase of maize for feeding purposes at guaranteed price ............................127
2.3.2 Certain measures regarding disturbances on the market of maize for feeding
purposes ....................................................................................................................... ....127
2.4. Support programmes for wheat for human consumption...........................................128
2.4.1. State purchase of wheat for human consumption harvested in 1998 at guaranteed
price.......................................................................................................................... ........128
2.4.2. Income support for certain producers through intervention purchase of their
wheat harvested in 1998 .................................................................................................129
2.5. Support programmes for milk.......................................................................................130
2.5.1. Regulation of the ma rket for co w milk .........................................................................130
2.5.2. Quality-linked support for cow milk.............................................................................131
2.5.3. Assistance to the purchase of qualified sheep milk......................................................1322.6. Support programmes for apple .....................................................................................133
2.6.1. Intervention assistance to the processing of apple in bulk harvested in 1996 ...........133
2.6.2.  Intervention assistance to the processing of apple in bulk harvested in 1997 ...........133
2.6.3.  Intervention assistance to the purchase of apples in bulk harvested in 1998 ............134
2.6.4.  Interest subsidy on loans received for the purchase and storage of extra and 1st class
fresh apples harvested in 1998 .......................................................................................135
2.7. Support programmes for wine.......................................................................................136G/SCM/N/16/HUN
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2.7.1. Intervention assistance for the distillati on of wine produced in 1997 in order to
reduce stocks.................................................................................................................. ..136
2.7.2. Intervention assistance for the distillation  of vintage wine of 1998 in order to reduce
stocks ......................................................................................................................... .......137
2.7.3. Interest subsidy for the purchase of wh ite grapes produced in 1998 in certain
regions........................................................................................................................ ......137
2.8. Support programme for barley, rye, triticale harvested in 1998................................138
2.8.1 Income support for certain producers through intervention purchase of their barley,
rye, triticale harvested in 1998.......................................................................................138
2.9. Support programme for poultry....................................................................................1392.9.1. Assistance to the production of quality poultry for slaughter ....................................139
3-4. OTHER SUPPORT PROGRAMMES ....................................................................................140
3.1. Assistance to stock-breeding ..........................................................................................140
3.2. Assistance to fi shery activities........................................................................................141
3.3. Assistance to agriculture and forestry ..........................................................................1423.3.1 Assistance to the preservation or development of biological bases and the
modernisation of related system of qualification ...........................................................................142
3.3.1.1  Assistance to genetical development ..............................................................................142
3.3.1.2  Assistance to the purchase and changes of breeding animals and to the expansion of
their stocks ............................................................................................................................... ...143
3.3.2. Assistance to the utilisation of arable lands in disadvantaged producing areas .......144
3.3.4. Assistance to mending, cultivating and pr eserving the quality and the quantity of
forests ........................................................................................................................ .......145
3.3.5. Assistance to the establishment of sylviculturist and co-operative associations........146
3.4. Assistance to game husbandry.......................................................................................1463.5. Assistance to the prot ection of arable land...................................................................147
3.6. Assistance to the construction and the renovation of buildings..................................148
3.7. Assistance to the establishment of vineyards and orchards........................................150
3.8. Regional assistance programmes...................................................................................151
3.8.1. Assistance to the development of disadvantaged regions ............................................151
3.8.2. Assistance to the inhabitants of settleme nts with less than 3,000 inhabitants living in
disadvantaged regions ....................................................................................................152
3.8.3. Additional assistance to certain counties in disadvantaged areas ..............................153
3.9. Assistance to foster co -operative integration................................................................153
3.10. Assistance to the purchase of individual shares of members of co-operatives ..........154
3.11. Assistance to the realisation of certa in goals of the agr icultural policy .....................155
3.12. Assistance to common ma rketing in agr iculture..........................................................156
3.13. Agricultural resea rch programmes...............................................................................157
3.14. Assistance to the joint establishment of wholesale markets by producers and to
investments of joint sales or ganisations of producers..................................................158
4.1. Finance subsidies.......................................................................................................... ...158
4.1.1. Assistance given to further agricultural activities .......................................................1584.1.2. Government guarantee...................................................................................................15 9
4.1.3-4.1.4. Assistance to the purchase and leasing of agricultural machinery ...........................160
4.1.5. Assistance to members of co-operatives in acquiring loans ........................................161
4.1.6. Interest subsidy for l oans of curren t assets ..................................................................162
4.2. Assistance to the production of certain agricultural products....................................1634.3. Assistance to the restructuring  of the agricultural sector ...........................................164
4.4. Assistance to soil melioration and to irrigation investment ........................................165
4.5. Assistance for planting and restru cturing forests and afforestation..........................166G/SCM/N/16/HUN
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4.6. Payments for relief from environm ental degradation of forests ................................166
4.7. Refund of the consumption tax on diesel fuel...............................................................167
4.8. Assistance to the participation in crop insurance schemes .........................................1684.9. Payments for relief from  natural di sasters...................................................................169
4.9.1. Payments for relief from natural disasters affecting plant cultivation in 1995.........169
4.9.2. Payments for relief from  fireblight disease...................................................................170
4.9.3. Payments for relief from natural disasters affecting plant cultivation in 1997.........170
4.9.4. Natural disasters not covere d by insurance policies ....................................................171
4.10. Assistance to the organisation of vine-growing communities .....................................171
4.11. Assistance to the utilisation of advisory and extension services .................................1714.13. Assistance to the maintenance of recreational and park woods .................................172
4.14.  Assistance to tobacco harvested in 1995 .......................................................................173
4.15. Assistance to potatoes harvested in 1996 ......................................................................174
4.16. Market intervention  relating to eggs.............................................................................174
4.16.1. Market intervention  relating to eggs.............................................................................174
4.16.2. Market intervention relat ing to egg production...........................................................175
4.17. Intervention support for quality production of game birds........................................176
4.18. Assistance to bee keepers................................................................................................1 76
4.19. Assistance to the establishment of envi ronmentally friendly crop structure ............177
4.20. Assistance to the transition to organic production ......................................................1784.21. Assistance to stabilisat ion of the cer eal market............................................................179
4.22. Intervention assistance to producers of wh eat for feeding purposes for selling their
crop........................................................................................................................... ........180
4.23. Assistance to the maintenance and deve lopment of the statistical data-bases of
producers’ councils .........................................................................................................181
4.24. Assistance to the improveme nt of competitiveness ......................................................182
4.25. Assistance to the reduction of costs rela ting to the rental of agricultural land.........182
4.26. Assistance to socially disadvantaged agricultural communities .................................183
4.27. Assistance to the construction and modernisation of rural roads ..............................184
4.28. Assistance to the serv ice of field wardens .....................................................................185
4.29. Assistance to young farmers ..........................................................................................186
4.30. Assistance to agricultural employment.........................................................................1874.31. Assistance to the school milk programme in Szabolcs-Szatmár-Bereg county .........187
4.32. Assistance to the purchasing of the req uired amount of the maize for feeding
purposes ....................................................................................................................... ....188
4.33. Assistance to the storage of maize harvested in 1998 for feeding purposes in public
warehouses..................................................................................................................... ..189
4.34. Wheat exchange transaction ..........................................................................................190
4.35. Assistance to the purchase of whea t seed for the 1998 autumn sowing .....................191
4.36. Interest subsidy to loans received for th e purchase of apple in bulk harvested in 1997
for processing purposes ..................................................................................................192
4.37.  Interest subsidy on loans received for the purchase of apple in bulk harvested in
1998 ........................................................................................................................... .......193
4.38. Intervention assistance to the sell ing of wheat for feeding purposes..........................194
4.39. Market intervention related to the duck production...................................................1944.40. Quality-linked support to the production of sugar beet..............................................195
4.41. Emergency income support to certain producers of cereals .......................................196
4.42. Assistance to reduce the sanita ry costs of certa in animals..........................................197
4.43. Assistance to the production of sowing seed.................................................................198G/SCM/N/16/HUN
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4.44. Assistance to the purchase of  the required amount of cereals for feeding and of wheat
for milling purposes ........................................................................................................199
4.45. Assistance to the storage in public warehouse of wheat harvested in 1998 ...............1994.46. Assistance to introduce the HACCP system of quality management.........................200
4.47. Intervention support to maintain the EU approved level of hygiene of pig and cattle
slaughterhouses ...............................................................................................................2 01
5. CORPORATE TAX CONCESSIONS TO ASSIST STRUCTURAL ADJUSTMENT AND
ECONOMIC DEV ELOPMENT..............................................................................................202
5.1. Corporate Tax Concession for Companies with Foreign Participation.....................202
5.2. Tax Concession for Dividend  Invested in Hungary by Foreign Shareholders .........2035.3. Tax Concession in Entrepreneurial Zone .....................................................................204
5.4. Tax Concession Related to Regional Investments........................................................205
5.5 Tax Concession for Investments Exceeding 1 Billion HUF.........................................206
5.6. Tax Concession for Investments Exceeding 3 Billion HUF.........................................207
5.7. Tax Concession for Investments Exceeding 10 Billion HUF.......................................2085.8. Tax Concession to Promote Structural Adjustment....................................................209
5.9. Tax Concession for Bank Credits Financing Other Investments ...............................210
5.10. Tax Rate Relief for Foreign Investors...........................................................................211
5.11. Tax Concession Related to Investments........................................................................212
5.12 Tax Concession  in Regions of High Priority................................................................2135.13. Tax Concession to Promote Investments in Production of Exportable Goods..........214
5.14. Tax Relief Related to R&D Activities ...........................................................................215
6. BASIC CENTRAL TECHNICAL DEVELOPMENT PROGRAMME ..............................216
7. TERRITORIAL DEV ELOPMENT FUND ............................................................................217
8. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT............218
9. MINING CONVERS ION PROGRAMME.............................................................................219G/SCM/N/16/HUN
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1. EXPORT ENHANCEMENT PROGRAMMES
1.1. E XPORT ENHANCEMENT PROGRAMME FOR AGRICULTURAL AND FISHERY PRODUCTS
1. Title of the subsidy programme
Export enhancement programme for agricultural and fishery products
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 45/1995. (XII.29.) FM-PM-IKIM of the Minister for Agriculture, the Minister for Finance and
the Minister for Industry, Trade and Tourism, as amended by Decree 17/1996. (VI.11.) FM-PM-IKIM
of the Minister for Agriculture, the Minister for Finance and the Minister for Industry, Trade and
Tourism
7. Subsidy per unit or the total amount
The list of products benefiting from and the corresponding per unit amount of export
subsidies for 1996 are contained in the annexes to the above Decrees.  The content of these annexes is
reproduced in the Annex to this document.
Payments under this programme amounted to HUF 35,000 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.2. E XPORT ENHANCEMENT PROGRAMME FOR APPLES HARVESTED IN 1996
1. Title of the subsidy programme
Export enhancement programme for apples harvested in 1996
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.G/SCM/N/16/HUN
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4. Background and authority for the subsidy
Decree 32/1996. (XI.19.) FM of the Minister for Agriculture
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 4.5 per kg, if the purchase price is at least HUF 30 per kg (HUF 40, if transport costs
from the farm are included).
Payments under this programme amounted to HUF 20 million during the period covered by
the notification.
8. Duration of the subsidy
From 19 November 1996 to 1 August 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.3. E XPORT ENHANCEMENT PROGRAMME FOR PIG FOR SLAUGHTER
1. Title of the subsidy programme
Export enhancement programme for pig for slaughter
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 18/1996. (VI.11.) FM of the Minister for Agriculture.
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 20 per kgPayments under this programme amounted to HUF 75 million during the period covered by
the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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8. Duration of the subsidy
From 11 July to 3 October 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2. PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN AGRICULTURAL
PRODUCTS
2.1. S UPPORT PROGRAMME FOR BEEF FOR SLAUGHTER
2.1.1 State purchase of beef for slaughter at guaranteed price1. Title of the subsidy programme
State purchase of beef for slaughter at guaranteed price
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 47/1995. (XII.29.) FM of th e Minister of Agriculture
7. Subsidy per unit or the total amount
Classification, quality standards, guaranteed prices
Definition:
CattleClass Guaranteed price
HUG per kg.
1st group:  male E and 1st class 160
2nd group:  male E and 2nd class 145
No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 29 December 1995 to 29 January 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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2.2. S UPPORT PROGRAMME FOR PIG FOR SLAUGHTER
2.2.1. State purchase of pig for slaughter at guaranteed price
1. Title of the subsidy programme
State purchase of pig for slaughter at guaranteed price
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 41/1995. (XI.29.) FM of the Minister of Agriculture.
7. Subsidy per unit or the total amount
Classification, quality standards, guaranteed prices.
Class Guaranteed price, HUF per kg.
E 155
U 143
R 132
No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 29 November 1995 to 29 January 1997.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.3. S UPPORT PROGRAMME OF MAIZE FOR FEEDING PURPOSES
2.3.1. State purchase of maize for feeding purposes at guaranteed price
1. Title of the subsidy programme
State purchase of maize for feeding purposes at guaranteed price
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 13/1996 (V.7.) FM of the Minister for AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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7. Subsidy per unit or the total amount
The guaranteed price was HUF 12,500 per ton
No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 7 May 1996 to 7 March 1997.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.4. S UPPORT PROGRAMME FOR WHEAT FOR HUMAN CONSUMPTION
2.4.1. State purchase of wheat for human consumption harvested in 1996 at guaranteed price
1. Title of the subsidy programme
State purchase of wheat for human consumption harvested in 1996 at guaranteed price
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 32/1995. (IX.29.) FM of the Minister fo r Agriculture as amended by Decree 9/1996
(III. 28.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
The guaranteed price was HUF 9,800 per tonNo intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 September 1995 to 31 March 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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2.5. S UPPORT PROGRAMMES FOR MILK
2.5.1. Regulation of the market for cow milk
1. Title of the subsidy programme
Regulation of the market for cow milk
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 46/1995. (XII.29.) FM of the Minister for Agriculture.
7. Subsidy per unit or the total amount
The guarantied price was:
HUF 30 per l for extra high quality milk;
HUF 28 per l for first quality milk.
No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.5.2. Quality-linked support for cow milk
1. Title of the subsidy programme
Quality-linked support for cow milk
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 46/1995. (XII.29.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Processor: HUF 1.5 if the purchase price is at least HUF 36 per l for extra high quality milk
and HUF 1 if the purchase price is at least HUF 34 per l for first class quality milk.G/SCM/N/16/HUN
G/SCM/N/25/HUN
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Producer: the above-mentioned subsidy per unit, if the purchase price is less than that
indicated above.
Payments under this programme amounted to HUF 1,810 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.6. S UPPORT PROGRAMME FOR APPLES
2.6.1. Intervention assistance to the processing of apples in bulk harvested in 1996
1. Title of the subsidy programme
Intervention assistance to the processing of apples in bulk harvested in 1996
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 31/1996 (XI.19.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 2.5 per kg, if the purchase price is at least HUF 20 per kg.
Budgetary outlays for this programme were limited to HUF 500 million. The maximum
eligible quantity for support is 200,000 tons.
No payments under this programme occurred during the period covered by the notification.G/SCM/N/16/HUN
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G/SCM/N/38/HUN
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8. Duration of the subsidy
From 19 September 1996 to 31 January 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3. ASSISTANCE PROGRAMMES FINANCED PREVIOUSLY FROM THE VARIOUS
AGRICULTURAL FUNDS
3.1. A SSISTANCE TO STOCK -BREEDING
1. Title of the subsidy programme
Assistance to stock-breeding
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 44/1995 (XII.29.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 941 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.2. A SSISTANCE TO FISHERY ACTIVITIES
1. Title of the subsidy programme
Assistance to fishery activities
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 44/1995 (XII.29.) FM of the Minister for Agriculture.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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7. Subsidy per unit or the total amount
Payments under this programme amounted HUF 200 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3. A SSISTANCE TO AGRICULTURE AND FORESTRY
3.3.1. Assistance to the preservation or developmen t of biological bases and the modernisation
of related system of qualification
3.3.1.1. Assistance to genetical development
1. Title of the subsidy programme
Assistance to genetical development
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 177/1995. (XII.29.) Korm of the Govern ment as amended by Decree 22/1996. (II.7.)
Korm of the Government
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 211 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
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3.3.1.2. Assistance to the purchase and changes of breeding animals and to the expansion of their
stocks
1. Title of the subsidy programme
Assistance to the purchase and changes of breeding animals and to the expansion of their
stocks
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 177/1995. (XII.29.) Korm of the Govern ment as amended by Decree 22/1996. (II.7.)
Korm of the Government
7. Subsidy per unit or the total amount
For bull for service: HUF 50,000 per male;
For boar for service: HUF 10,000 to 25,000 per male;
For ram for service and he-goat for service: HUF 10,000 to 20,000.
Payments under this programme amounted to HUF 174 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.2. Assistance to the utilisation of arable land in disadvantaged producing areas
1. Title of the subsidy programme
Assistance to the utilisation of arable land in disadvantaged producing areas
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 177/1995. (XII.29.) Korm of the GovernmentG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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7. Subsidy per unit or the total amount
HUF 2,000 to 5,000 per ha in the case of plough-land, vineyards, orchards and gardens,
HUF 1,000 to 2,000 per ha in the case of lawn.
Payments under this programme amounted to HUF 6,000 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.3. Assistance to investment in, and develo pment of agricultural production and food
processing
Phased out.
3.3.4. Assistance to mending, cultivating and preser ving the quality and the quantity of forests
1. Title of the subsidy programme
Assistance to mending, cultivating and preserving the quality and the quantity of forests
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 44/1995 (XII.29.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 993 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
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3.3.5. Assistance to the establishment of sylviculturist and co-operative associations
1. Title of the subsidy programme
Assistance to the establishment of sylviculturist and co-operative associations
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 177/1995. (XII.29.) Korm of the Government
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 9 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.4. A SSISTANCE TO GAME HUSBANDRY
1. Title of the subsidy programme
Assistance to game husbandry
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 44/1995 (XII. 29) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 218 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996G/SCM/N/16/HUN
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9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.5. A SSISTANCE TO THE PROTECTION OF ARABLE LAND
1. Title of the subsidy programme
Assistance to the protection of arable land
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 44/1995 (XII.29.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
40 per cent of the costs related to the process of quickening the soil, preserving the quality of
land and the elaboration of projects in this regard.
80 per cent of the costs of research related to the quantitative and qualitative protection of
croplands.
Payments under this programme amounted to HUF 849 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.6. A SSISTANCE TO THE CONSTRUCTION AND THE RENOVATION OF BUILDINGS
1. Title of the subsidy programme
Assistance to the construction and the renovation of buildings
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To assist the construction and renovation of buildings.G/SCM/N/16/HUN
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4. Background and authority for the subsidy
Decree 44/1995 (XII.29.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant and interest subsidy.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Grant
For new construction projects serving
(a) agricultural activities:
- HUF 4,000 per square metre in the case of open or partly open buildings;
- HUF 6,000 per square metre in the case of closed heat-insulated buildings;
- HUF 10,000 per square metre in the case of dairy, wine production and cold storage
facilities.
(b) forestry activities:- HUF 3,000 to 5,000 per square metre in the case of two-lane forest paths;- HUF 1,600 to 2,400 per square metre in the case of single-lane paths with covering.(c) game husbandry activities:
- HUF 6,000 per square metre in the case of closed-space game keeping and small
game keeping
- HUF 4,000 per square metre in the case of hay and feed storage facilities.(d) fishery activities:
- HUF 200,000 per ha in the case of fish pond projects.
For renovation projects serving- agricultural and fishery activities:
- 40 per cent of  the cost of a new construction.G/SCM/N/16/HUN
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Interest subsidy
- 30 per cent of the interest in general;
- 20 per cent of the interest in the case of renovation of buildings used for food processing.
Payments under this programme amounted to HUF 10,000 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January 1996.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.7. A SSISTANCE TO THE ESTABLISHMENT OF VINEYARDS AND ORCHARDS
1. Title of the subsidy programme
Assistance to the establishment of vineyards and orchards.
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To renew old vineyards and orchards
4. Background and authority for the subsidy
Decree 44/1995 (XII.29.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Owners and tenants of vineyards or orchards
7. Subsidy per unit or the total amount
Grant
orchards:
HUF 0.36-0.68 million per ha
vineyards:
HUF 0.448-0.907 million per haG/SCM/N/16/HUN
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Interest subsidy
30 per cent of the interest on loans granted for more than one year.
Payments under this programme amounted to HUF 1,600 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.8. R EGIONAL ASSISTANCE PROGRAMME
1. Title of the subsidy programme
Regional assistance programme
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To compensate for regional disadvantages
4. Background and authority for the subsidy
Decree 44/1995 (XII.29.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Increase by 20 per cent of the grant or by 10 per cent of the interest subsidy provided under
the "3.6 Assistance to the construction and the renovation of buildings"- programme.
Payments under this programme are accounted for under the "3.6 Assistance to the
construction and the renovation of buildings" programme.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.9. A SSISTANCE TO FOSTER CO -OPERATIVE INTEGRATION
1. Title of the subsidy programme
Assistance to foster co-operative integration
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To encourage co-operative integration in the field of production, purchase and marketing.
4. Background and authority for the subsidy
Decree 44/1995 (XII.29.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural co-operatives
7. Subsidy per unit or the total amount
Increase by 40 per cent of the grant provided under the "3.6 Assistance to the construction and
the renovation of buildings"- programme.
Payments under this programme are accounted for under the "3.6 Assistance to the
construction and the renovation of buildings"-programme.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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3.10. A SSISTANCE TO THE PURCHASE OF INDIVIDUAL SHARES OF MEMBERS OF CO -OPERATIVES
1. Title of the subsidy programme
Assistance to the purchase of individual shares of members of co-operatives
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To encourage the establishment of competitive farm sizes and to increase non-distributable
co-operative property.
4. Background and authority for the subsidy
Decree 44/1995 (XII.29.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural co-operatives
7. Subsidy per unit or the total amount
A maximum 5 per cent of the value of individual share or, at most, 7.5 per cent of the nominal
value as recorded on 31 December 1995.
Payments under this programme amounted to HUF 402 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.11. A SSISTANCE TO THE REALISATION OF CERTAIN GOALS OF THE AGRICULTURAL POLICY
1. Title of the subsidy programme
Assistance to the realisation of certain goals of the agricultural policyG/SCM/N/16/HUN
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2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To assist  young experts
To assist foreign training programmes
To assist promotion of community marketing
To improve national imageTo support the organisation of the National Agricultural and Food Industry Exhibition and
Fair.
4. Background and authority for the subsidy
Decree 44/1995 (XII. 29.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Young agricultural experts
Product CouncilsParticipants of the fair
7. Subsidy per unit or the total amount
Up to 50 per cent of the costPayments under this programme amounted to HUF 606 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.12. A GRICULTURAL RESEARCH PROGRAMMES
1. Title of the subsidy programme
Agricultural research programmes
2. Period covered by the notification
1996G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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3. Policy objective and/or purpose of the subsidy
To assist agricultural research
4. Background and authority for the subsidy
Decree CXXI /1995 of Law
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Institute
7. Subsidy per unit or the total amount
Grant
Payments under this programme amounted to HUF 96 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4. AGRICULTURAL SUBSIDY PROGRAMMES ESTABLISHED BY THE
GOVERNMENT
4.1. F INANCE SUBSIDIES
4.1.1. Assistance given to further agricultural activities1. Title of the subsidy programme
Assistance given to further agricultural activities
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 177/1995 (XII.29.) Korm of the GovernmentG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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7. Subsidy per unit or the total amount
30 per cent of the interest on bank loans.
Payments under this programme amounted to HUF 9,500 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.2. Government guarantee
1. Title of the subsidy programme
Government guarantee
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 177/1995 (XII.29.) Korm of the Government
7. Subsidy per unit or the total amount
No government guarantee was granted during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.3-4.1.4. Assistance to the purchase and leasing of agricultural machinery
1. Title of the subsidy programme
Assistance to the purchase and leasing of agricultural machinery
2. Period covered by the notification
1996G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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4. Background and authority for the subsidy
Decree 44/1995 (XII.29.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant and interest subsidy.
7. Subsidy per unit or the total amount
25 per cent of the actual purchase price or 30 per cent of the interest on related bank loan.25 per cent of the leasing fee.Payments under this programme amounted to HUF 7,200 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.5. Assistance to members of co-operatives in acquiring loans
1. Title of the subsidy programme
Assistance to members of co-operatives in acquiring loans.
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 177/1995 (XII.29.) Korm of the Government
7. Subsidy per unit or the total amount
30 per cent of the interest on bank loans.Payments under this programme amounted to HUF 1,300 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.2. A SSISTANCE TO THE PRODUCTION OF CERTAIN AGRICULTURAL PRODUCTS
1. Title of the subsidy programme
Assistance to the production of certain agricultural products
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 187/1994 (XII.30.) Korm of the Government
7. Subsidy per unit or the total amount
Maximum HUF 2,000 per ha of sown area with cerealsPayments under this programme amounted to HUF 2,100 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1995
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.3. A SSISTANCE TO THE RESTRUCTURING OF THE AGRICULTURAL SECTOR
1. Title of the subsidy programme
Assistance to the restructuring of the agricultural sector.
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 177/1995 (XII.29.) Korm of the Government
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 11,000 million during the period covered
by the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 34
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
 4.4. A SSISTANCE TO SOIL MELIORATION AND TO IRRIGATION INVESTMENT
1. Title of the subsidy programme
Assistance to soil melioration and to irrigation investment
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 177/1995 (XII.29.) Korm of the Government
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 1,300 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.5. A SSISTANCE FOR PLANTING AND RESTRUCTURING FORESTS AND AFFORESTATION
1. Title of the subsidy programme
Assistance for planting and restructuring forests and afforestation
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Decree 177/1995 (XII.29.) Korm of the GovernmentG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 35
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 1,000 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.6. P AYMENTS FOR RELIEF FROM ENVIRONMENTAL DEGRADATION OF FORESTS
1. Title of the subsidy programme
Payments for relief from environmental degradation of forests
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To compensate for losses of income due to the environmental degradation of forests.
4. Background and authority for the subsidy
Decree 177/1995 (XII.29.) Korm of the Government
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Owners or tenants of forests
7. Subsidy per unit or the total amount
HUF 600 per net cubic metrePayments under this programme amounted to HUF 179 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 36
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.7. R EFUND OF THE CONSUMPTION TAX ON DIESEL FUEL
1. Title of the subsidy programme
Refund of the consumption tax on diesel fuel.
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To reduce the tax burden on producers resulting from the use of diesel fuel for agricultural
purposes.
4. Background and authority for the subsidy
Decree 31/1996 (II. 27.) Korm of the Government
5. Form of the subsidy
Tax refund
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 6,100 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.8. A SSISTANCE TO THE PARTICIPATION IN CROP INSURANCE SCHEMES
1. Title of the subsidy programme
Assistance to the participation in crop insurance schemesG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 37
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To promote the enrolment of producers in crop insurance schemes.
4. Background and authority for the subsidy
Decree 177/1995. (XII.29.) Korm of the Government
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
30 per cent of the insurance premium
Payments under this programme amounted to HUF 412 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.9. P AYMENTS FOR RELIEF FROM NATURAL DISASTERS
4.9.1. Payments for relief from natural disa sters affecting plant cultivation in 1995
1. Title of the subsidy programme
Payments for relief from natural disasters affecting plant cultivation in 1995
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To compensate for losses of income due to drought in 1995.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 38
4. Background and authority for the subsidy
Decree 162/1995 (XII.27.) Korm of the Government
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Producers affected by drought in 1995.
7. Subsidy per unit or the total amount
Interest subsidy of 20 per cent.Payments under this programme amounted to HUF 460 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.9.2. Payments for relief from fireblight disease
1. Title of the subsidy programme
Payments for relief from fireblight disease
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To compensate for income losses due to the destruction of orchards by fireblight disease.
4. Background and authority for the subsidy
Decree 2322/1996 (IX.28.) Korm of the Government
5. Form of the subsidy
GrantG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 39
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 281 million during the period covered by
the notification.
8. Duration of the subsidy
From 28 November to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.10. A SSISTANCE TO THE ORGANISATION OF VINE -GROWING COMMUNITIES
1. Title of the subsidy programme
Assistance to the organisation of vine-growing communities
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To promote the establishment of vine-growing communities.
4. Background and authority for the subsidy
Decree 17/1995 (VI.1.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Villages in vine-growing areas
7. Subsidy per unit or the total amount
HUF 2,000 per capita
No payments under this programme occurred during the period covered by the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 40
8. Duration of the subsidy
From 9 June 1995 to 31 March 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.11. A SSISTANCE TO THE UTILISATION OF ADVISORY AND EXTENSION SERVICES
1. Title of the subsidy programme
Assistance to the utilisation of advisory and extension services.
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To promote the use of advisory and extension services
4. Background and authority for the subsidy
Decree 177/1995. (XII.29.) Korm of the Government
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers utilising advisory and extension services.
7. Subsidy per unit or the total amount
- 50 per cent of advisory fee,
- a maximum 50 per cent of the costs of training.
Payments under this programme amounted to HUF 183 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 41
4.12. A SSISTANCE TO THE "BORSOD -ABAÚJ -ZEMPLÉN " REGION
1. Title of the subsidy programme
Assistance to the "Borsod-Abaúj-Zemplén" region
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To compensate for regional disadvantages.
4. Background and authority for the subsidy
Decree 152/1996 (X.10.) Korm of the Government and 29/1996 (XI.5) FM of Ministry for
Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers in the region without limitations on the type of production.
7. Subsidy per unit or the total amount
Increase by 10 per cent of the grant or interest subsidy provided under the "  4.4 Assistance to
soil melioration and to irrigation investment"- programme.
20 per cent of the difference between the planting costs of forests and the assistance provided
under the "4.5 Assistance for planting and restructuring forests and afforestation"- programme for
such purposes.
Payments under this programme amounted to HUF 600 million during the period covered by
the notification.
8. Duration of the subsidy
From 10 October to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 42
4.13. A SSISTANCE TO THE MAINTENANCE OF RECREATIONAL AND PARK WOODS
1. Title of the subsidy programme
Assistance to the maintenance of recreational and park woods
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
To co-finance the costs of maintaining forest faci lities such as botanical gardens, parking lots,
green corridors and hiking paths.
4. Background and authority for the subsidy
Decree 177/1995 (XII.29.) Korm of the Government
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Operators of forest facilities
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 79 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.14. A SSISTANCE TO TOBACCO HARVESTED IN 1995
1. Title of the subsidy programme
Assistance to tobacco harvested in 1995
2. Period covered by the notification
1996G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 43
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 15/1996 (V.30.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
HUF 7.7-15.0 per kg according to the type of tobacco
The maximum product quantity that can benefit from this subsidy was  9,079 tons.
Payments under this programme amounted to HUF 99 million during the period covered by
the notification.
8. Duration of the subsidy
From 7 June 1996 to 13 August 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5. CORPORATE TAX CONCESSIONS
5.1. C ORPORATE TAX CONCESSION FOR COMPANIES WITH FOREIGN PARTICIPATION
1. Title of the subsidy programme
Corporate tax concession for companies with foreign participation
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
The tax reduction is 60 per cent in the first five years and 40 per cent for an additional five
year period in the case of “manufacturing of goods”. In the case of “activities of particular
importance” the reduction rates are 100 per cent  and 60 per cent respectively. The total amount of tax
concession accounted for HUF 29,706 million.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 44
9. Statistical data permitting an assessment of the trade effects of the subsidy.
N.A.
5.2. T AX CONCESSIONS GRANTED TO ASSIST STRUCTURAL ADAPTATION
5.2.1. Tax concession to promote export-oriented product development
1. Title of the subsidy programme
Tax concession to promote export-oriented product development
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated, according to the following ratio of th e interest on the loans and credits linked to the
approved project: 30 per cent of the capitalised interest or 18 per cent of the interest accounted as
costs.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.2.2. Tax concession to promote investments in production of exportable goods
1. Title of the subsidy programme
Tax concession to promote investments in production of exportable goods
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
These tax concessions can be made use of in the form of withholding the tax out of the tax
calculated, according to the following ratio of the interests on mid-term bank loans and credits: 19 per
cent of the capitalised interest or 6 per cent of the interest accounted as costs.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.2.3. Tax concession for short term credit financing export claims
1. Title of the subsidy programme
Tax concession for short term credit financing export claimsG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 45
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated according to following ratio of the interests on short-term bank credits: 19 per cent of the
capitalised interest or 6 per cent of the interest accounted as costs.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.2.4. Tax concession for bank credits provided for investment financing
1. Title of the subsidy programme
Tax concession for bank credits provided for investment financing
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated, according to the following ratio of interests on bank credits: 19 per cent of the capitalised
interest or 12 per cent of the interest accounted as costs. The total amount of tax concessions granted
under this and programmes 5.2.1, 5.2.2, 5.2.3 accounted for HUF 1,351 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.3. T AX BENEFIT FOR THE PURCHASE OF MACHINES
1. Title of the subsidy programme
Tax benefit for the purchase of machines
2.  Period covered by the notification
1996
7. Subsidy per unit or the total amount
The tax concession is equal to 6 per cent of the value of the machine put into operation and
operated at the head office or premises of the beneficiary in the year of putting into operation. The
benefit may be withheld from the tax calculated. The total amount of tax concession granted under
this programme accounted for HUF 507 million.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 46
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.4.1. Investment-related tax concessions
1. Title of the subsidy programme
Investment-related tax concessions
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
The maximum extent of the subsidy is 100 per cent of the corporate Tax due for the first 5
years and 60 per cent for the second period of 5 years.
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated, at most up to its approved level. The total amount of subsidies granted under this and
programme 13 accounted for HUF 10,723 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.4.2. Tax concession to off-shore companies
1. Title of the subsidy programme
Tax concession to off-shore companies
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
The total amount of tax concessions accounted for HUF 397 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.5. T AX CONCESSION FOR DIVIDEND REINVESTED IN HUNGARY BY FOREIGN SHAREHOLDERS
1. Title of the subsidy programme
Tax concession for dividend reinvested in Hungary by foreign shareholdersG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 47
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
The scheme is intended to encourage foreign shareholders to invest their dividends in
Hungary.
4. Background and authority for the subsidy
This type of subsidy is provided for by Section 12, paragraph (5) of Act LXXXVI of 1991 on
the Corporate Tax.
5. Form of the subsidy:
The subsidy is in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
If the foreign shareholder of an economic association invests the whole or a part of the
dividends due to him (i) to increase the founders’ assets or (ii) in other economic associations already
functioning or being founded in Hungary, then the economic association is entitled to a tax benefit
identical with the tax payable for this sum.
7. Subsidy per unit or the total amount
The total amount of tax concessions accounted for HUF 57 million.
8. Duration of the subsidy
No explicit time-limit is attached to this subsidy.
9. Statistical data permitting an assessment of the trade effects of the subsidy.
N.A.
5.6. T AX CONCESSION IN ENTREPRENEURIAL ZONES
1. Title of the subsidy programme
Tax concession in entrepreneurial zones
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
The purpose of the tax concession is to encourage investments in entrepreneurial zones.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 48
4. Background and authority for the subsidy
The tax benefit is provided for by Section 13, paragraph (5) of Act LXXXVI of 1991 on the
Corporate Tax.
5. Form of the subsidy:
The subsidy is granted in the form of deduction from the Corporate Tax.
6. To whom and how the subsidy is provided
Corporations with head office or with premises registered in an entrepreneurial zone are
entitled to this tax concession.
The tax concession may be claimed on the basis of the value of machine and building put into
operation for the first time following the qualification of a zone as an entrepreneurial one.
7. Subsidy per unit or the total amount
The tax concession is equal to 6 per cent of the value of machine and building put into
operation and operated at the head office or premises in the year of putting into operation. The benefit
may be withheld from the tax calculated. The total amount of tax concessions accounted for HUF 12
million.
8. Duration of the subsidy
It was introduced in 1996. No explicit time-limit is attached to this subsidy.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
6. CENTRAL FUND FOR TECHNICAL DEVELOPMENT
1. Title of the subsidy programme
Central Fund for Technical Development
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
Gross Government Budget Expenditure: HUF 4,160 million
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 49
7. TERRITORIAL DEVELOPMENT FUND
1. Title of the subsidy programme
Territorial Development Fund
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
The total amount of support accounted for HUF 4,700 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
8. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT
1. Title of the subsidy programme
Budgetary Scheme Earmarked for Economic Development
2. Period covered by the notification
1996
4. Background and authority for the subsidy
Act LXXXIII of 1992 on Segregated State Funds, acts on annual state budgets, Decree 4/1996
(II.16.) of the Ministry of Industry, Trade and Tourism (replacing Decree 19/1995 (VI.13.) of the
MIT)
5. Form of the subsidy:
(a) In case of investments a grant and/or a reimbursable grant up to 33 per cent of the
total investment costs, but not more than  200 million HUF, except investments over 1
billion HUF in the manufacturing sector. In  other cases a grant and/or a reimbursable
grant can cover 50-100 per cent of the justified costs. In investments of particular
importance the state is allowed to get a stake of max. 10 per cent but it should be
privatised in 3-5 years.
(b) A reimbursable grant up to 33 per cent of the total investment costs, but not more
than 200 million HUF. The support may take  also the form of interest rate and
guarantee fee subsidy.
(c) Interest on investment loans. The subsidy is equivalent to 25 per cent of the basic
interest rate of the National Bank of Hungary. The subsidised loan may not exceed 75
per cent of the investment costs and 400 million HUF. The loans are to be paid off
with a grace period of two years.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 50
(d) Interest on investment loans. Maximum ai d intensity: the subsidy is equivalent to 30
per cent of the basic interest rate of the National Bank of Hungary. The subsidised
loan may not exceed 75 per cent of the investment costs and 400 million HUF. Theloans are granted with a grace period of two years.
6. To whom and how the subsidy is provided
Statutory entitlements for the types of support listed in point 5:(a) Infrastructural investments outside of the lot of the enterprise; trade and investment
promotion; establishment of quality certifying systems in line with EU standards;
cofinance of international aid programmes. Benefits are awarded through tender
procedures.
(b) Infrastructural investment inside the lot of the enterprise; establishment of industrial
zones; projects increasing supply of goods competitive on all markets. Benefits are
awarded through tender procedures.
(c) Companies with max. 500 employees and of Hungarian majority in ownership; the
ownership proportion of the state and banks may not exceed 25 per cent each.
(d) SMEs with 11-250 employees, operating at least for 2 years in the manufacturing
industry.
7. Subsidy per unit or the total amount
Net cost to government: HUF 5,785 million
8. Duration of the subsidy
No time limit is attached to this programme.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
9. ENVIRONMENT PROTECTION FUND
1. Title of the subsidy programme
Environment Protection Fund
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
The total amount of subsidy accounted for HUF 8,608 million.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 51
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
10. MINING CONVERSION PROGRAMME
1. Title of the subsidy programme
Mining Conversion Programme
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
The aid amounted to HUF 3,600 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy.
N.A.
11. METALLURGY CONVERSION PROGRAMME
1. Title of the subsidy programme
Metallurgy Conversion Programme
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
The support is provided in the form of grant (HUF 5,512 million) and equity capital
(HUF 5,328 million).
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
12. ASSISTANCE TO PUBLIC RAILWAYS
1. Title of the subsidy programme
Assistance to Public Railways
2. Period covered by the notification
1996G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 52
7. Subsidy per unit or the total amount
The amount of subsidies accounted for HUF 26,966 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy.
N.A.
13. SUPPORT FOR JOB-CREATING INVESTMENTS
1. Title of the subsidy programme
Support for Job-creating Investments
2. Period covered by the notification
1996
7. Subsidy per unit or the total amount
Please see under programme 5.4.1.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
14. ASSISTANCE TO URANIUM-ORE MINING
1. Title of the subsidy programme
Assistance to Uranium-ore Mining
2. Period covered by the notification
1996
3. Policy objective and/or purpose of the subsidy
The aim of the assistance is to cover the losses of mining until the mine will be definitely
closed down and to address the social problems stemming from the closing down.
4. Background and authority for the subsidy
Act LXXVIII of 1996 on additional State Budget
5. Form of the subsidy:
GrantG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 53
6. To whom and how the subsidy is provided
Uranium-ore Mining Company in the Mecsek region
7. Subsidy per unit or the total amount
The total amount of subsidy budgeted and used in 1996 and 1997 is HUF 1,000 million
(GGBE).
8. Duration of the subsidy
1996-1997. The final date of closing down remains to be determined.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 54
1997
INTRODUCTION
Hungary’s notification contains both industrial and agricultural assistance programmes for the
implementation of which there was legislative authority in 1997, irrespective of whether they became
operative or not. Assistance programmes for which the legislative authority has expired, but there
were payments in 1997 are also included.
The fact that an assistance programme has been notified does not, in accordance with
Article 25.7 of the Agreement on Subsidies and Countervailing Measures, prejudge its legal status
under GATT 1994 or this Agreement, nor does it prejudge its effects under the Agreement on the
nature of the measure itself. Furthermore this does not imply in any way that any of the measures
notified, wholly or in part constitutes a specific subsidy.
In the case of previously notified programmes, only changes that occurred therein during the
period covered by this notification are indicated. Newly notified programmes are reported in full,pursuant to the agreed format of G/SCM/6.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 55
1. EXPORT ENHANCEMENT PROGRAMMES
1.1. E XPORT ENHANCEMENT PROGRAMME FOR AGRICULTURAL PRODUCTS
1. Title of the subsidy programme
Export enhancement programme for agricultural products
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 38/1996. (XII.29.) FM-PM-IKIM of the Minister for Agriculture, the Minister for
Finance and the Minister for Industry, Trade and Tourism, as amended by Decree 69/1997. (X.11.)
FM-PM-IKIM of the Minister for Agriculture, the Minister for Finance and the Minister for Industry,
Trade and Tourism
7. Subsidy per unit or the total amount
The list of products benefiting from and the corresponding per unit amount of export
subsidies for 1997 are contained in the annexes to the above Decrees. The content of these annexes is
reproduced in the Annex to this document.
Payments under this programme amounted to HUF 24,788 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January 1997 to 1 January 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.2. E XPORT ENHANCEMENT PROGRAMME FOR APPLES HARVESTED IN 1996
1. Title of the subsidy programme
Export enhancement programme for apples harvested in 1996
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 56
4. Background and authority for the subsidy
Decree 32/1996. (XI.19.) FM of the Minister for Agriculture
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 4.5 per kg, if the purchase price is at least HUF 30 per kgPayments under this programme amounted to HUF 40 million during the period covered by
the notification.
8. Duration of the subsidy
From 19 November 1996 to 1 August 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.3. E XPORT ENHANCEMENT PROGRAMME FOR PIG FOR SLAUGHTER
Phased out
1.4. E XPORT ENHANCEMENT PROGRAMME FOR POTATOES FOR HUMAN CONSUMPTION
1. Title of the subsidy programme
Export enhancement programme for potatoes for human consumption
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 32/1997. (V.8.) FM of the Minister for Agriculture
6. To whom and how the subsidy is provided
ExportersG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 57
7. Subsidy per unit or the total amount
HUF 4 per kg
Payments under this programme amounted to HUF 11 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 May to 31 July 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.5. I NTERVENTION ASSISTANCE OF FINANCING SURPLUS STOCKS OF DRIED ONION
1. Title of the subsidy programme
Intervention assistance of financing surplus stocks of dried onion
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 33/1997 (V.8.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 100 per kgPayments under this programme amounted to HUF 47 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 April to 30 September 1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.6. A SSISTANCE TO THE EXPORT OF SEASONAL MILK SURPLUS
1. Title of the subsidy programme
Assistance to the export of seasonal milk surplus
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 44/1997 (VI.11.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 5 per lPayments under this programme amounted to HUF 36 million during the period covered by
the notification.
8. Duration of the subsidy
From 15 July to 30 September 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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2. PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN AGRICULTURAL
PRODUCTS
2.1. S UPPORT PROGRAMME FOR BEEF FOR SLAUGHTER
2.1.1. State purchase of beef for slaughter at guaranteed price
1. Title of the subsidy programme
State purchase of beef for slaughter at guaranteed price
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 6/1997. (I.30.) FM of th e Minister for Agriculture
7. Subsidy per unit or the total amount
Classification, quality standards, guaranteed prices
Definition: Cattle Class Guaranteed price: HUF per kg
1st group: male E and 1st class 190
2nd group: male E and 1st class 170
E and 1st class
Between 250-450 kg154 3rd group: male
More than 450 kg 145
No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 30 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.2. S UPPORT PROGRAMMES FOR PIG FOR SLAUGHTER
2.2.1.  State purchase of pig for slaughter at guaranteed price
1. Title of the subsidy programme
State purchase of pig for slaughter at guaranteed priceG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 8/1997. (I.30) FM of th e Minister for Agriculture
7. Subsidy per unit or the total amount
Classification, quality standards, guaranteed prices
Class Guaranteed price, HUF per kg
   E 190
   U 176   R 160
No intervention occurred during the period covered by the notification.8. Duration of the subsidy
From 30 January to 21 November 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.2.2. Intervention support for the quality production of pig for slaughter
1. Title of the subsidy programme
Intervention support for the quality production of pig for slaughter
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand, to support agricultural
income and to encourage quality production.
4. Background and authority for the subsidy
Decree 45/1997. (VI.25) FM of the Minister for Agriculture
5. Form of the subsidy
GrantG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Classification, quality standards, guidance pricesClass Guidance price, HUF per kg
E 260
U 250
R 240
Support for producers (HUF per kg):
E class U class R class
Purchase
pricePayment Purchase
pricePayment Purchase
pricePayment
260 0 250 0 240 0
259 1 249 1 239 1
258 2 248 2 238 2
257 3 247 3 237 3
256 4 246 4 236 4
255 5 245 5 235 5
254 6 244 6 234 6
253 7 243 7 233 7
252 8 242 8 232 8
251 9 241 9 231 9
250 10 240 10 230 10
less than 250 10 less than 240 10 less than 230 10
Support for processors (HUF per kg):
Purchase
pricePayment Purchase
pricePayment Purchase
pricePayment
260 0 250 0 240 0
261 1 251 1 241 1
262 2 252 2 242 2
263 3 253 3 243 3
264 4 254 4 244 4
265 5 255 5 245 5
266 6 256 6 246 6
267 7 257 7 247 7
268 8 258 8 248 8
269 9 259 9 249 9
270 10 260 10 250 10
more than
27010 more than
26010 more than
25010G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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Payments under this programme amounted to HUF 522 million during the period covered by
the notification.
8. Duration of the subsidy
From 25 June to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.3. S UPPORT PROGRAMME FOR MAIZE FOR FEEDING PURPOSES
2.3.1. State purchase of maize for feeding purposes at guaranteed price
1. Title of the subsidy programme
State purchase of maize for feeding purposes at guaranteed price
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 13/1997 (II. 28) FM of the Minister for Agriculture
Decree 95/1997 (XI. 28) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
The guaranteed price was HUF 15,000 per ton.Payments under this programme amounted to HUF 1,224 million during the period covered
by the notification.
8. Duration of the subsidy
From 8 March 1997 to 1 March 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.3.2. Intervention purchase of maize for feeding purposes to eliminate difficulties on the
market
1. Title of the subsidy programme
Intervention purchase of maize for feeding purposes to eliminate difficulties on the marketG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 94/1997 (XI. 28) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
The intervention price was HUF 14,000 per ton.The maximum eligible quantity was 300,000 tons.Payments under this programme amounted to HUF 4,200 million during the period covered
by the notification.
8. Duration of the subsidy
From 28 September 1997 to 15 June 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.4. S UPPORT PROGRAMME FOR WHEAT FOR HUMAN CONSUMPTION
2.4.1.  State purchase of wheat for human consumpt ion harvested in 1997 at guaranteed price
1. Title of the subsidy programme
State purchase of wheat for human consumption harvested in 1997 at guaranteed price
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 34/1996. (XI.22.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
The guaranteed price was HUF 15,000 per ton.No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 30 November 1996 to 31 December 1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 64
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.5. S UPPORT PROGRAMMES FOR MILK
2.5.1 Regulation of the market for cow milk
1. Title of the subsidy programme
Regulation of the market for cow milk
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 5/1997. (I .30.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Guaranteed price: HUF 34 per l for first class quality milk
HUF 37 per l  for extra quality milk
No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 30 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.5.2. Quality-linked support for cow milk
1. Title of the subsidy programme
Quality-linked support for cow milk
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 1/1997. (I .8.) FM of the Minister fo r Agriculture as amended by 22/1997 (III.14) FM
of the Minister for Agriculture and 44/1997 (VI.11.) FM of the Minister for AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 65
7 Subsidy per unit or the total amount
From 1 January to 31 August 1997:
Processor: HUF 1.5 per l if the purchase price is at least HUF 43.2 per l for extra high quality
milk and HUF 1 per l if the pu rchase price is at least HUF 40.8 per l for first class quality
milk.
From 1 September to 31 December 1997:
Processor: HUF 1.5 per l if the purchase price is at least HUF 44 per l for extra high quality
milk and HUF 1 per l if the purchase price is at least HUF 45 per l for first class quality milk.
Producer: the above-mentioned subsidy per unit, if the purchase price is less than that
indicated above.
Payments under this programme amounted to HUF 1,154 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.5.3. Assistance to the purchase of qualified sheep milk
1. Title of the subsidy programme
Assistance to the purchase of qualified sheep milk
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and to encourage quality production.
4. Background and authority for the subsidy
Decree 2/1997. (I .8.) FM of the Minister for Agriculture
5. Form of the subsidy
GrantG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 66
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 25 per l for the first class quality milk, if the purchase price is at least HUF 100 per l.The maximum supported quantity for support is 2 million l.
Payments under this programme amounted to HUF 40 million during the period covered by
the notification.
8. Duration of the subsidy
From 8 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.6. S UPPORT PROGRAMMES FOR APPLE
2.6.1. Intervention assistance to the processing for apple in bulk harvested in 1996
1. Title of the subsidy programme
Intervention assistance to the processing for apple in bulk harvested in 1996
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 31/1996 (XI.19.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
ProcessorsG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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7. Subsidy per unit or the total amount
HUF 2.5 per kg, if the purchase price is at least HUF 20 per kg
Payments under this programme amounted to HUF 136 million during the period covered by
the notification
8. Duration of the subsidy
From 19 September 1996 to 31 January 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.6.2. Intervention assistance to the processing  for apples in bulk harvested in 1997
1. Title of the subsidy programme
Intervention assistance to the processing for apples in bulk harvested in 1997
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 71/1997 (X.11.) FM of the Minister for Agriculture as amended by Decree 85/1997
(XI.26.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 3.8 per kg if the purchase price is at least
HUF 21 per kg.
Payments under this programme amounted to HUF 798 million during the period covered by
the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 68
8. Duration of the subsidy
From 1 October 1997 to 30 July 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.7. S UPPORT PROGRAMME FOR WINE
2.7.1. Intervention assistance for the distillation of wine produced in 1997 in order to reduce
stocks
1. Title of the subsidy programme
Intervention assistance for the distillation of wine produced in 1997 in order to reduce stocks
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To reduce surplus stocks.
4. Background and authority for the subsidy
Decree 66/1997. (IX.26.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Distilleries
7. Subsidy per unit or the total amount
The subsidy is HUF 40 per l if the purchase price is at least HUF 55 per lPayments under this programme amounted to HUF 617 million during the period covered by
the notification.
8. Duration of the subsidy
From 26 September to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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3. ASSISTANCE PROGRAMMES FINANCED PREVIOUSLY FROM THE VARIOUS
AGRICULTURAL FUNDS
3.1. A SSISTANCE TO STOCK -BREEDING
1. Title of the subsidy programme
Assistance to stock-breeding
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 640 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.2. A SSISTANCE TO FISHERY ACTIVITIES
1. Title of the subsidy programme
Assistance to fishery activities
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 113 million during the period covered by
the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 70
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3. A SSISTANCE TO AGRICULTURE AND FORESTRY
3.3.1 Assistance to the preservation or developmen t of biological bases and the modernisation
of related system of qualification
3.3.1.1 Assistance to genetical development
1. Title of the subsidy programme
Assistance to genetical development
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 479 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.1.2. Assistance to the purchase and changes of breeding animals and to the  expansion of their
stocks
1. Title of the subsidy programme
Assistance to the purchase and changes of breeding animals and to the  expansion of their
stocks
2. Period covered by the notification
1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 71
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
For bull for service: HUF 50,000 per male
For boar for service: HUF 10,000 to 25,000 per male
For ram for service and he-goat for service: HUF 10,000 to 20,000
For cattle for service: HUF 30,000 per femaleFor pig for service : HUF 6,000 to 15,000
For sheep and goats for service : HUF 6,000 to 8,000 per female.
Assistance for the special ENAR
identification system of th e cattle: HUF 450 per capita.
For sperm of cattle and hog: HUF 400 to 500.
Payments under this programme amounted to HUF 1,700 million during the period covered
by the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.2. Assistance to the utilisation of arable land in disadvantaged producing areas
1. Title of the subsidy programme
Assistance to the utilisation of arable land in disadvantaged producing areas
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
HUF 2,000 to 3,500 per ha in the case of plough-land, vineyards, orchards and gardens,HUF 1,000 to 2,000 per ha in the case of lawn,
HUF 3,000 per ha in the case of fish lake.
Payments under this programme amounted to HUF 6,100 million during the period covered
by the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 72
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.3. Assistance to investment in and develo pment of agricultural production and food
processing
Phased out in 1996
3.3.4. Assistance to mending, cultivating and preser ving the quality and the  quantity of forests
1. Title of the subsidy programme
Assistance to mending, cultivating and preserving the quality and the quantity of forests
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 3,400 million during the period covered
by the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.5. Assistance to the establishment of sylviculturist and co-operative associations
1. Title of the subsidy programme
Assistance to the establishment of sylviculturist and co-operative associations
2. Period covered by the notification
1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 73
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 140 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.4. A SSISTANCE TO GAME HUSBANDRY
1. Title of the subsidy programme
Assistance to game husbandry
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 277 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 74
3.5. A SSISTANCE TO THE PROTECTION OF ARABLE LAND
1. Title of the subsidy programme
Assistance to the protection of arable land
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
40 per cent of the costs related to the process of quickening the soil, preserving the quality of
land and the elaboration of projects in this regard.
80 per cent of the costs of research related to the quantitative and qualitative protection of
croplands,
Payments under this programme amounted to HUF 1,300 million during the period covered
by the notification
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.6. A SSISTANCE TO THE CONSTRUCTION AND RENOVATION OF BUILDINGS
1. Title of the subsidy programme
Assistance to the construction and renovation of buildings
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To assist the construction and the renovation of buildings.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 75
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 6,600 million during the period covered
by the notification.
8. Duration of the subsidy
From 18 January 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.7.  A SSISTANCE TO THE ESTABLISHMENT OF VINEYARDS AND ORCHARDS
1. Title of the subsidy programme
Assistance to the establishment of vineyards and orchards
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To renew old vineyards and orchards.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Owners and tenants of vineyards or orchards.
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 630 million during the period covered by
the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 76
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.8. R EGIONAL ASSISTANCE PROGRAMME
1. Title of the subsidy programme
Regional assistance programme
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To compensate for regional disadvantages.
4. Background and authority for the e subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Producers living in settlements with less than 30,000 inhabitants located in disadvantaged
regions and use arable land on the outskirts.
7. Subsidy per unit or the total amount
Increase by 20 per cent of the grant or by 10 per cent of the interest subsidy provided under
the "3.6 Assistance to the construction and the renovation of buildings"programme.
Payments under this programme amounted to HUF 208 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 77
3.9. A SSISTANCE TO FOSTER CO -OPERATIVE INTEGRATION
1. Title of the subsidy programme
Assistance to foster co-operative integration
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To encourage co-operative integration in the field of production, purchase and marketing.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural co-operatives
7. Subsidy per unit or the total amount
Increase by 40 per cent of the grant provided under the "3.6 Assistance to the construction and
the renovation of buildings"-programme.
Payments under this programme are accounted for under the "3.6 Assistance to the
construction and the renovation of buildings"-programme.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.10. A SSISTANCE TO THE PURCHASE OF INDIVIDUAL SHARES OF MEMBERS OF CO -OPERATIVES  
1. Title of the subsidy programme
Assistance to the purchase of individual shares of members of co-operatives
2. Period covered by the notification
1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 78
3. Policy objective and/or purpose of the subsidy
To encourage the establishment of competitive farm sizes and to increase non-distributable
co-operative property.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural co-operatives
7. Subsidy per unit or the total amount
A maximum 5 per cent of the value of individual share or, at most, 7.5 per cent of the nominal
value as recorded on 31 December 1995.
Payments under this programme amounted to HUF 284 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.11. A SSISTANCE TO THE REALISATION OF CERTAIN GOALS OF THE AGRICULTURAL POLICY
1. Title of the subsidy programme
Assistance to the realisation of certain goals of the agricultural policy
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To assist young experts.
To assist foreign training programmes.
To assist agricultural research.To assist development of the agricultural information network and rural development.
To co-finance the participation in internationa l fairs, the publication of advertising brochures
and the use of geographical indications.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 79
To support the organisation of the National Agricultural and Food  Industry Exhibition and
Fair.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Young agricultural experts,
Agricultural  research institutes
7. Subsidy per unit or the total amount
Grant, maximum 50 per cent of the cost
Payments under this programme amounted to HUF 830 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.12. A SSISTANCE TO COMMON MARKETING IN AGRICULTURE
1. Title of the subsidy programme
Assistance to common marketing in agriculture
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To co-finance the participation on international fairs.
Promotion of Hungarian agricultural products.
Assistance to market research with advanced methods.
4. Background and authority for the subsidy
Decree 3/1997 (XI. 28) FM of the Minister for AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 80
7. Subsidy per unit or the total amount
Maximum 50 per cent of the costs.
Payments under this programme amounted to HUF 477.6 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.13. A GRICULTURAL RESEARCH PROGRAMMES
1. Title of the subsidy programme
Agricultural research programmes
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To assist agricultural research.
4. Background and authority for the subsidy
Act CXXIV of 1996 on the budget of the Hungarian Republic in 1997
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural research institute
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 198 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 81
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.14. A SSISTANCE TO THE JOINT ESTABLISHMENT OF WHOLESALE MARKETS BY PRODUCERS AND TO
INVESTMENTS OF JOINT SALES ORGANISATIONS OF PRODUCERS
1. Title of the subsidy programme
Assistance to the joint establishment of wholes ale markets by producers and to investments of
joint sales organisations of producers
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To encourage the joint establishment of wholesale markets by producers and to investments
of joint sales organisations of producers.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy:
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
No payment occurred during the period covered by the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 82
4. AGRICULTURAL SUBSIDY PROGRAMMES ESTABLISHED BY THE
GOVERNMENT
4.1. F INANCE SUBSIDIES
4.1.1. Assistance given to further agricultural activities
1. Title of the subsidy programme
Assistance given to further agricultural activities
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
40 per cent of the interest on bank loans.
Payments under this programme amounted to HUF 12,000 million during the period covered
by the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.2. Government guarantee
1. Title of the subsidy programme
Government guarantee
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
No government guarantee was granted during the period covered by the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 83
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.3-4.1.4 Assistance  to the purchase a nd leasing of agricultural machinery.
1. Title of the subsidy programme
To assist the purchase and leasing of agricultural machinery
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant and interest subsidy
7. Subsidy per unit or the total amount
25 per cent of the actual purchase price or 30 per cent of the interest on related bank loan.
25 per cent of the leasing fee.
Payments under this programme amounted to HUF 11,000 million during the period covered
by the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.5. Assistance to members of co-operatives in acquiring loans
1. Title of the subsidy programme
Assistance to members of co-operatives in acquiring loans
2. Period covered by the notification
1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 84
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
40 per cent of the interest on bank loans.Payments under this programme amounted to HUF 800 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.2. A SSISTANCE TO THE PRODUCTION OF CERTAIN AGRICULTURAL PRODUCTS
Phased out
4.3. A SSISTANCE TO THE RESTRUCTURING OF THE AGRICULTURAL SECTOR
1. Title of the subsidy programme
Assistance to the restructuring of the agricultural sector
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 4,400 million during the period covered
by the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 85
4.4. A SSISTANCE TO SOIL MELIORATION AND TO IRRIGATION INVESTMENT
1. Title of the subsidy programme
Assistance to soil melioration and to irrigation investment
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 1,800 million during the period covered
by the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.5. A SSISTANCE FOR PLANTING AND RESTRUCTURING FORESTS AND AFFORESTATION
1. Title of the subsidy programme
Assistance for planting and restructuring forests and afforestation
2. Period covered by the notification
1997
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 1,300 million during the period covered
by the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 86
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.6. P AYMENTS FOR RELIEF FROM ENVIRONMENTAL DEGRADATION OF FORESTS
1. Title of the subsidy programme
Payments for relief from environmental degradation of forests
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To compensate for losses of income due to the environmental degradation of forests.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Owners and tenants of forests
7. Subsidy per unit or the total amount
HUF 500 per gross cubic metre of timberPayments under this programme amounted to HUF 202 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.7.  R EFUND OF THE CONSUMPTION TAX ON DIESEL FUEL
1. Title of the subsidy programme
Refund of the consumption tax on diesel fuelG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 87
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To reduce the tax burden of producers.
4. Background and authority for the subsidy
Decree 31/1996 (II. 27) Korm of the Government
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Refund of 70 per cent of the consumption tax on diesel fuel.
Payments under this programme amounted to HUF 6,600 million HUF during the period
covered by the notification.
8. Duration of the subsidy
From 1 January 1996.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.8. A SSISTANCE TO THE PARTICIPATION IN CROP INSURANCE SCHEMES
1. Title of the subsidy programme
Assistance to the participation in crop insurance schemes
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Promoting the enrolment of producers in crop insurance schemes.
4. Background and authority for the subsidy
Decree 3/1997. (I. 8.) FM of the Minister for AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 88
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
30 per cent of the insurance premium.Payments under this programme amounted to HUF 1,600 million during the period covered
by the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.9. P AYMENTS FOR RELIEF FROM NATURAL DISASTERS
4.9.1. Payments for relief from natural disa sters affecting plant cultivation in 1995
1. Title of the subsidy programme
Payments for relief from natural disasters affecting plant cultivation in 1995
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To compensate for losses of income due to drought in 1995.
4. Background and authority for the subsidy
Decree 162/1995 (XII.27.) Korm of the Government
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Producers affected by drought in 1995G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 89
7. Subsidy per unit or the total amount
Interest subsidy of 20 per cent.
Payments under this programme amounted to HUF 500 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 August 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.9.2. Payments for relief from firelight disease
Phased out
4.10. A SSISTANCE TO THE ORGANISATION OF WINE -GROWING COMMUNITIES
Phased out
4.11. A SSISTANCE TO THE UTILISATION OF ADVISORY AND EXTENSION SERVICES
1. Title of the subsidy programme
Assistance to the utilisation of advisory and extension services
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To promote the use of advisory and extension services.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
50 per cent of cost.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 90
Payments under this programme amounted to HUF 300 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.12. A SSISTANCE TO THE "BORSOD -ABAÚJ -ZEMPLÉN " REGION
Phased out.
4.13. A SSISTANCE TO THE MAINTENANCE OF RECREATIONAL AND PARK WOODS
1. Title of the subsidy programme
Assistance to the maintenance of recreational and park woods
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To co-finance the costs of maintaining forest fa cilities such as botanical gardens, parking lots,
green corridors and hiking paths.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Operators of forest facilities
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 85 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 91
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.14.  A SSISTANCE TO TOBACCO HARVESTED IN 1995
1. Title of the subsidy programme
Assistance to tobacco harvested in 1995
2. Period covered by the notification
1997
3., Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 15/1996 (V.30.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producer
7. Subsidy per unit or the total amount
HUF 7.7-15 per kg according to the type of tobacco.Payments under this programme amounted to HUF 8.6 million during the period covered by
the notification.
8. Duration of the subsidy
From 7 July 1996 to 13 August 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.15. A SSISTANCE TO POTATOES HARVESTED IN 1996
1. Title of the subsidy programme
Assistance to potatoes harvested in 1996G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 92
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 31/1997 (V.8.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers providing potatoes to public institutions free of charge.
7. Subsidy per unit or the total amount
HUF 7-10 per kg
Payments under this programme amounted to HUF 9 million during the period covered by the
notification.
8. Duration of the subsidy
From 8 May to 1 September 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.16. M ARKET INTERVENTION RELATING TO EGGS
1. Title of the subsidy programme
Market intervention relating to eggs
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 61/1997 (IX.10.) FM of the Minister for AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 93
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 2 per piece.  The maximum quantity eligible for support is 50 million.Payments under this programme amounted to HUF 83 million during the period covered by
the notification.
8. Duration of the subsidy
From 10 September 1997 to 13 August 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.17. I NTERVENTION SUPPORT FOR QUALITY PRODUCTION OF GAME BIRDS
1. Title of the subsidy programme
Intervention support for quality production of game birds
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To assist to the quality production.
4. Background and authority for the subsidy
96/1997 (XII.1.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
ProcessorsG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 94
7. Subsidy per unit or the total amount
HUF 150 per kg for wild- goose, wild-duck, and pheasant.
No payments occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 October to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.18. A SSISTANCE TO BEE KEEPERS
1. Title of the subsidy programme
Assistance to bee keepers
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To co-finance medical costs.
4. Background and authority for the subsidy
Decree 76/1997 (X.31.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Bee keepers
7. Subsidy per unit or the total amount
Maximum  HUF 1,000 per colonyPayments under this programme amounted to HUF 7 million during the period covered by the
notification.
8. Duration of the subsidy
From 31 October 1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 95
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.19. A SSISTANCE TO THE ESTABLISHMENT OF ENVIRONMENTALLY -FRIENDLY CROP STRUCTURE
1. Title of the subsidy programme
Assistance to the establishment of environmentally-friendly crop structure
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Soil conservation
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers who increase the share of the area sown with certain leguminous crops (peas seed,
soya bean for sowing, chickpeas for sowing, horse beans, lentils, lupin), by at least 5 per cent
compared to the year 1996 and in doing so use high-quality seeds.
7. Subsidy per unit or the total amount
HUF 8,000 per haPayments under this programme amounted to HUF 245 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.20. A SSISTANCE TO THE TRANSITION TO ORGANIC PRODUCTION
1. Title of the subsidy programme
Assistance to the transition to organic productionG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 96
2.. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To promote organic production.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers engaged in organic production for at least three years or who are developing
technologies or plant varieties to be used for such purposes.
7. Subsidy per unit or the total amount
30 per cent of the cost of transition.Payments under this programme amounted to HUF 64 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.21. A SSISTANCE TO THE STABILISATION OF THE CEREALS MARKET
1. Title of the subsidy programme
Assistance to the stabilisation of the cereals market
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To assist public and private stockholding.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 97
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
Decree 46/1997 (VI. 25.) FM of the Minister for Agriculture
Decree 68/1997 (X.21.) FM of the Minister for Agriculture
Decree 72/1997 (X.21.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy to cover 70 per cent of the cost for producers who place their crop in public
storage.
Grant for private grain storage: HUF 10 per ton per week.
Payments under this programme amounted to HUF 138 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.22. I NTERVENTION ASSISTANCE TO PRODUCERS OF WHEAT FOR FEEDING PURPOSES FOR SELLING
THEIR CROP
1. Title of the subsidy programme
Intervention assistance to producers of wheat for feeding purposes for selling their crop
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To reduce surplus.
4. Background and authority for the subsidy
Decree 74/1997 (X. 28.) FM of the Minister for AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 98
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers who sold their wheat for feeding purposes until 25 of November 1997.
7. Subsidy per unit or the total amount
HUF 1,000 per tonPayments under this programme amounted to HUF 109 million during the period covered by
the notification.
8. Duration of the subsidy
From: 28 October 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.23. A SSISTANCE TO THE MAINTENANCE AND DEVELOPMENT OF THE STATISTICAL DATA -BASES OF
PRODUCERS ’ COUNCILS
1. Title of the subsidy programme
Assistance to the maintenance and development of the statistical data-bases of producers’
councils
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Statistical monitoring of the agricultural sector.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Product councilsG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 99
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 84 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.24. A SSISTANCE TO THE IMPROVEMENT OF COMPETITIVENESS
1. Title of the subsidy programme
Assistance to the improvement of competitiveness
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To improve competitiveness.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Grant: 30 per cent of the cost of the export credit insurance
Interest subsidy: 40 per cent in the case of HUF loan, and 30 per cent in the case of foreign
currency loan.
Payments under this programme amounted to HUF 42 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 100
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5. CORPORATE TAX CONCESSIONS
5.1. C ORPORATE TAX CONCESSION FOR COMPANIES WITH FOREIGN PARTICIPATION
1. Title of the subsidy programme
Corporate tax concession for companies with foreign participation
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
Tax reduction is 60 per cent in the first five years and 40 per cent for an additional five year
period in the case of “manufacturing of goods”. In the case of “activities of particular importance” the
reduction rates are 100 per cent and 60 per cent, respectively. The total amount of tax concessionprovided under this programme and programme 5.5 accounted for HUF 39,000 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.2. T AX CONCESSIONS GRANTED TO ASSIST STRUCTURAL ADAPTATION
5.2.1. Tax concession to promote export-oriented product development
1. Title of the subsidy programme
Tax concession to promote export-oriented product development
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated, according to the following ratio of th e interest on the loans and credits linked to the
approved project: 30 per cent of the capitalised interest or 18  per cent of the interest accounted as
costs.
The total amount of the tax concession associated with this programme – and the programmes
5.2.2, 5.2.3 and 5.2.4 – was 1,000 million in 1997.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 101
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.2.2. Tax concession to promote investments in production of exportable goods
1. Title of the subsidy programme
Tax concession to promote investments in production of exportable goods
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
These tax calculated according to the following ratio of the interests on mid-term bank loans
and credits: 19 per cent of the capitalised interest or 6 per cent of the interest accounted as costs.
As to the amount of the tax concessions please see programme 5.2.1.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.2.3. Tax concession for short term credit financing export claims
1. Title of the subsidy programme
Tax concession for short term credit financing export claims
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated according to following ratio of the interests on short-term bank credits: 19 per cent of thecapitalised interest or 6 per cent of the interest accounted as costs. Concerning the amount of the tax
concession please see programme 5.2.1.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.2.4. Tax concession for bank credits provided for investment financing
1. Title of the subsidy programme
Tax concession for bank credits provided for investment financingG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 102
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated according to the following ratio of interests on bank credits: 19 per cent of the capitalised
interest or 12 per cent of the interest accounted as costs.
Regarding the amount of the tax concession please see programme 5.2.1.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.3. T AX CONCESSION IN REGIONS OF HIGH PRIORITY
1. Title of the subsidy programme
Tax concession in regions of high priority
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
The purpose of the tax benefit is to stimulate investments in regions of high priority (i.e.
where the rate of unemployment exceeds 15 per cent).
4. Background and authority for the subsidy
The tax benefit is provided for by Section 22, paragraphs (1) and (2) of Act LXXXI of 1996
on the Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is granted in the form of deduction from the Corporate Tax.
6. To whom and how the subsidy is provided
Corporations with head offices or with premises registered in a region of high priority are
entitled to this tax concession.
The tax concession may be claimed on the basis of the value of machines, infrastructural
investments put into operation in a region of high priority.
7. Subsidy per unit or the total amount
The tax concession is equal to 6 per cent of the value of the machine, infrastructural
investment put into operation and operated at the head office or premises in the year of putting into
operation.  The benefit may be withheld from the tax calculated.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 103
The total amount of tax concession accounted for HUF 392 million.
8. Duration of the subsidy
This tax concession may not be applied after the year 2002.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.4.1. Investment-related tax concessions
1. Title of the subsidy programme
Investment-related tax concessions
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The maximum extent of the subsidy is 100 per cent of the corporate tax due for the first 5
years and 60 per cent for the second 5 years.
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated, at most up to its approved level. The total amount of subsidies granted under this
programme and programmes 13 accounted for HUF 17,000 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.4.2. Concession to Off-shore Companies
1. Title of the subsidy programme
Tax Concession to Off-shore Companies
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The companies covered by the Act may take advantage of a preferential 3 per cent tax rate.
The amount of tax concessions accounted for HUF 583 million.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 104
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.5. T AX CONCESSION FOR DIVIDEND REINVESTED IN HUNGARY BY FOREIGN SHAREHOLDERS
1. Title of the subsidy programme
Tax concession for dividend reinvested in Hungary by foreign shareholders
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
Please see programme 5.1.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.6. T AX CONCESSION IN ENTREPRENEURIAL ZONES
1. Title of the subsidy programme
Tax concession in entrepreneurial zones
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The tax concession amounted to HUF 83 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.7 T AX CONCESSION FOR INVESTMENTS EXCEEDING HUF 1 B ILLION
1. Title of the subsidy programme
Tax concession for investments exceeding HUF 1 billion
2. Period covered by the notification
1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 105
3. Policy objective and/or purpose of the subsidy
The objective of this tax concession is to promote investment activities.
4. Background and authority for the subsidy
This tax concession is provided for by Section 21, paragraph (1) and (2) of Act LXXXI of
1996 on the Corporate Tax and Dividend Tax as modified by the Act CVI of 1997 on the Corporate
Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is provided for in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
(a) Companies, that after 31 December 1995 began an investment for the production of
goods of at least 1 billion HUF may receive a 50 per cent tax benefit in those taxation
years of a five year period following the project’s start up when
- their sale proceeds increase by at least 5 per cent of the value of investment or
- the level of sale proceeds in a given year corresponds to the value calculated on the
basis of successive yearly sale proceeds increase of 5 per cent.
(b) Companies, that after 31 December 1996 began an investment for creating
commercial accommodation of at least 1 billion HUF may receive a 50 per cent tax
benefit in those taxation years of a five year period following the project’s start up
when
- their sale proceeds increase by 25 per cent but at least by 600 million HUF compared
to the previous year or
- the level of sale proceeds in a given year corresponds to the value calculated on the
basis of successive yearly sale proceeds increase of 25 per cent or 600 million HUF.
7. Subsidy per unit or the total amount
The total amount of tax benefit was 600 million HUF.
8. Duration of the subsidy
The last taxation year when the tax concession can be applied for is 2002.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
6. CENTRAL FUND FOR TECHNICAL DEVELOPMENT
1. Title of the subsidy programme
Central Fund for Technical DevelopmentG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 106
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
Gross Government Budget Expenditure in 1997: HUF 4,125 million
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
7. TERRITORIAL DEVELOPMENT FUND
1. Title of the subsidy programme
Territorial Development Fund
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The total amount of support accounted for HUF 4,996 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
8. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT
1. Title of the subsidy programme
Budgetary Scheme Earmarked for Economic Development
2., Period covered by the notification
1997
7. Subsidy per unit or the total amount
Net cost to government: HUF 10,211 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 107
9. ENVIRONMENT PROTECTION FUND
1. Title of the subsidy programme
Environment Protection Fund
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The total amount of subsidy (net cost to government) accounted for HUF 1.650 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
10. MINING CONVERSION PROGRAMME
1. Title of the subsidy programme
Mining Conversion Programme
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The total amount provided for under this programme was HUF 6.241 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
11. METALLURGY CONVERSION PROGRAMME
1. Title of the subsidy programme
Metallurgy Conversion Programme
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The total amount of support provided for under this scheme amounted to HUF 3,081 million.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 108
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
12. ASSISTANCE TO PUBLIC RAILWAYS
1. Title of the subsidy programme
Assistance to Public Railways
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
The amount of subsidies accounted for HUF 29,812 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
13. SUPPORT FOR JOB-CREATING INVESTMENTS
1. Title of the subsidy programme
Support for Job-creating Investments
2. Period covered by the notification
1997
7. Subsidy per unit or the total amount
Please see under programme 5.4.1.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
14. ASSISTANCE TO URANIUM-ORE MINING
1. Title of the subsidy programme
Assistance to Uranium-ore Mining
2. Period covered by the notification
1997G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 109
7. Subsidy per unit or the total amount
The total amount of subsidy provided for amounted to HUF 1,000 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
15. TAX RELIEF RELATED TO R AND D ACTIVITIES
1. Title of the subsidy programme
Tax Relief Related to R and D Activities
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
The policy objective of this scheme is to promote R and B activities.
4. Background and authority for the subsidy
This type of support is provided for by Section 7, para. (1), subpara. t) of Act LXXXI of 1996
on the Corporate Tax and Dividend Tax.
5. Form of the subsidy
This subsidy is in the form of deduction from the corporate tax base.
6. To whom and how the subsidy is provided
The tax relief is available for companies engaged in research and development activities.
7. Subsidy per unit or the total amount
A tax relief of 20 per cent of the amount incurred in the tax year on the grounds of research
and development and accounted for as own direct costs of research and development is deductible
from the tax base.
8. Duration of the subsidy
This scheme was introduced in 1997 and no explicit time-limit is attached to it.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 110
1998
INTRODUCTION
Hungary’s notification contains both industrial and agricultural assistance programmes for the
implementation of which there was legislative authority in 1998, irrespective of whether they became
operative or not. Assistance programmes for which the legislative authority has expired, but there
were payments in 1998 are also included.
The fact that an assistance programme has been notified does not, in accordance with
Article 25.7 of the Agreement on Subsidies and Countervailing Measures, prejudge its legal status
under GATT 1994 or this Agreement, nor does it prejudge its effects under the Agreement on the
nature of the measure itself. Furthermore this does not imply in any way that any of the measures
notified, wholly or in part constitutes a specific subsidy.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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1. EXPORT ENHANCEMENT PROGRAMMES
1.1. E XPORT ENHANCEMENT PROGRAMME FOR AGRICULTURAL PRODUCTS
1. Title of the subsidy programme
Export enhancement programme for agricultural products
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 111/1997. (XII.30.) FM-PM-IKIM of the Mi nister for Agriculture, the Minister for
Finance and the Minister for Industry, Trade and Tourism, as amended by Decree 11/1998 (III.31.) FM-
PM-IKIM of the Minister for Agriculture, the Minister for Finance and the Minister for Industry, Trade
and Tourism, 47/1998 (VI.16.) FM-PM-IKIM of the Minister for Agriculture, the Minister for Finance
and the Minister for Industry, Trade and Tourism, 29/1998. (X.1.) FVM-PM-GM of the Minister forAgriculture and Regional Development, the Minister  for Finance and the Minister for Economic Affairs
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
The list of products benefiting from and the corresponding per unit amount of export subsidies
for 1998 are contained in the annexes to the above Decrees. The content of these annexes is reproduced
in the Annex to this document.
Payments under this programme amounted to HUF 13,792 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.2. E XPORT ENHANCEMENT PROGRAMME FOR APPLE HARVESTED IN 1996
Phased out
1.3. E XPORT ENHANCEMENT PROGRAMME FOR LIVE PIG
1. Title of the subsidy programme
Export enhancement programme for live pig
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 41/1998 (V.22.) FM of the Minister for Agriculture as amended by 14/1998 (VIII.28.)
FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 30 per kgPayments under this programme amounted to HUF 76 million during the period covered by the
notification.
8. Duration of the subsidy
From 22 May  to 31 December  1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 113
1.4. E XPORT ENHANCEMENT PROGRAMME FOR POTATOES FOR HUMAN CONSUMPTION
Phased out
1.5. I NTERVENTION ASSISTANCE OF FINANCING SURPLUS STOCKS OF DRIED ONION
Phased out
1.6. A SSISTANCE TO THE EXPORT OF SEASONAL MILK SURPLUS
1. Title of the subsidy programme
Assistance to the export of seasonal milk surplus
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 44/1997 (VI.11.) FM of the Minister for Agriculture; Decree 40/1998. (V.22.) FM of the
Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 80 – 200 per l
No payments occurred during the period covered by the notification.
8. Duration of the subsidy
From 22 June to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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1.7. E XPORT ENHANCEMENT PROGRAMME FOR CERTAIN PORK AND PROCESSED PORK PRODUCTS
1. Title of the subsidy programme
Export enhancement programme for certain pork and processed pork products
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 17/1998. (IV.3.) FM of the Minister fo r Agriculture as amended by Decrees 16/1998
(VIII.28) FVM and 50/1998. (XI.4.) FVM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 20 per kg.  The maximum eligible quantity is  6,000 tons.Payments under this programme amounted to HUF 375 million during the period covered by the
notification.
8. Duration of the subsidy
From 3 April  to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.8. E XPORT ENHANCEMENT PROGRAMME FOR RABBIT FOR SLAUGHTER
1. Title of the subsidy programme
Export enhancement programme for rabbit for slaughter
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 115
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 23/1998. (IV.17.) FM of the Minister for Agriculture as amended by Decree 54/1998.
(XII.1.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 20 per kg.  The maximum eligible quantity is 6,000 tons.Payments under this programme amounted to HUF 56 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.9. E XPORT ENHANCEMENT PROGRAMME FOR 500.000 TONS OF WHEAT FOR FEEDING PURPOSES
1. Title of the subsidy programme
Export enhancement programme for 500.000 tons of wheat for feeding purposes
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 116
4. Background and authority for the subsidy
Decree 24/1998. (IV.17.) FM of the Minister fo r Agriculture as amended by Decree 51/1998 (VI.
26 ) FM of Minister for Agriculture and 13/1998 (VIII.28).FVM of the Minister for Agriculture and
Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 1,500 per tonPayments under this programme amounted to HUF 261 million during the period covered by the
notification.
8. Duration of the subsidy
From 17 April  to 31 August 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.10. E XPORT ENHANCEMENT PROGRAMME FOR WHEAT HARVESTED IN 1998
1. Title of the subsidy programme
Export enhancement programme for wheat harvested in 1998
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 8/1998. (VII.31.) FVM of the Minister  for Agriculture and Regional Development
5. Form of the subsidy
GrantG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 117
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 1,500 per tonPayments under this programme amounted to HUF 190 million during the period covered by the
notification.
8. Duration of the subsidy
From 31 July to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.11. E XPORT ENHANCEMENT PROGRAMME FOR MILLING  OR EURO WHEAT
1. Title of the subsidy programme
Export enhancement programme for milling  or EURO wheat
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 56/1998. (VII.7.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 1,500-2,000 per tonPayments under this programme amounted to HUF 79 million during the period covered by the
notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 118
8. Duration of the subsidy
From 7 July to 31 October 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.12. E XPORT ENHANCEMENT PROGRAMME FOR TABLE , REGIONAL AND QUALITY WHITE WINE IN
BARRELS
1. Title of the subsidy programme
Export enhancement programme for table, regional and quality white wine in barrels
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 53/1998. (VI.26.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 12 per lPayments under this programme amounted to HUF 158 million during the period covered by the
notification.
8. Duration of the subsidy
From 26 June to 15 November 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 119
1.13. E XPORT ENHANCEMENT PROGRAMME FOR MUSHROOM
1. Title of the subsidy programme
Export enhancement programme for mushroom
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 34/1998. (V.13.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 25 per kgPayments under this programme amounted to HUF 14 million during the period covered by the
notification.
8. Duration of the subsidy
From 13 May 1998 to 31 January 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.14. E XPORT ENHANCEMENT PROGRAMME FOR CERTAIN CANNED MEAT  AND MEAT PRODUCTS
1. Title of the subsidy programme
Export enhancement programme for certain meat  and meat products
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 120
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 28/1998. (IV.24.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 45 per kgPayments under this programme amounted to HUF 7 million during the period covered by the
notification.
8. Duration of the subsidy
From 24 April to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.15. A DDITIONAL EXPORT ASSISTANCE FOR CERTAIN DUCK MEAT
1. Title of the subsidy programme
Additional export assistance for certain duck meat
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 55/1998. (VI.26.) FM of the Minister for AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 121
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 28 - 45  per kgPayments under this programme amounted to HUF 10 million during the period covered by the
notification.
8. Duration of the subsidy
From 26 June to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2. PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN AGRICULTURAL
PRODUCTS
2.1. S UPPORT PROGRAMMES FOR BEEF FOR SLAUGHTER
2.1.1. State purchase of beef for slaughter at guaranteed price1. Title of the subsidy programme
State purchase of beef for slaughter at guaranteed price
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.
4. Background and authority for the subsidy
Decree 82/1997. (XI.21.) FM of the Minister for Agriculture
5. Form of the subsidy
Buying-in of beef for slaughter at guaranteed prices.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Classification, quality standards, guaranteed prices
Definition
Cattle ClassGuaranteed
price
(HUF per kg)
 1st group: male  E and  1st class  230
 2nd group: male  E and  1st class  200
 3rd group male  E and  1st class
 250-450 kg  170
 more than 450 kg  150
No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.1.2. Intervention support for the quality production of beef for slaughter
1. Title of the subsidy programme
Intervention support for the quality production of beef for slaughter
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand, to support agricultural income
and encourage quality production.
4. Background and authority for the subsidy
Decree 97/1997. (XII.1) FM of the Minister for AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 123
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers, processors
7. Subsidy per unit or the total amount
Classification, quality standards, guidance prices
Definition: Cattle Class Guidance price, HUF per kg
1st group: male E and 1st class 275
2nd group: male E and 1st class 262
Support for producers:
1st  group 2nd group
Purchase price (HUF) Payment (HUF) Purchase price (HUF) Payment (HUF)
270 0 257 0
269 1 256 1
268 2 255 2
267 3 254 3
266 4 253 4
265 5 252 5
264 6 251 6
263 7 250 7
262 8 249 8
261 9
260 10
Less than 260 10 Less than 249 8
Support for processors:
1st  group 2nd group
Purchase price (HUF) Payment (HUF) Purchase price (HUF) Payment (HUF)
280 0 267 0
281 1 268 1
282 2 269 2
283 3 270 3
284 4 271 4
285 5 272 5
286 6 273 6
287 7 274 7
288 8 275 8
289 9
290 10
More than 290 10 More than 275 8G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 124
Payments under this programme amounted to HUF 35 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.2. S UPPORT PROGRAMMES FOR PIG FOR SLAUGHTER
2.2.1. State purchase of pig for slaughter at guaranteed price
1. Title of the subsidy programme
State purchase of pig for slaughter at guaranteed price
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices
4. Background and authority for the subsidy
84/1997 (XI.21.) FM of the Minister for Agriculture
5. Form of the subsidy
Buying-in of pig for slaughter at guaranteed prices.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Classification, quality standards, guaranteed prices
Class Guaranteed price, HUF per kg
E and S 270
U 250
R 228
No intervention occurred during the period covered by the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 125
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.2.2. Intervention support for the quality production of pig for slaughter
1. Title of the subsidy programme
Intervention support for the quality production of pig for slaughter
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand, to support agricultural income
and encourage quality production.
4. Background and authority for the subsidy
45/ 1997(VI.25) FM of the Minister for agriculture; 87/1997 (XI.26.) FM of the Minister for
Agriculture; 15/1998 (VIII.28) FVM of the Minister for Agriculture and Regional Development; 52/1998
(XI.4.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers, processors
7. Subsidy per unit or the total amount
Classification, quality standards, guidance prices
Class Guidance price, HUF per kg
E 334
U 315
R 297G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 126
Support for producers (HUF per kg):
E class U class R class
Purchase price Payment Purchase price   Payment Purchase price  Payment
328 0 309 0 291 0
327 1 308 1 290 1
326 2 307 2 289 2
325 3 306 3 288 3
324 4 305 4 287 4
323 5 304 5 286 5
322 6 303 6 285 6
321 7 302 7 284 7
320 8 301 8 283 8
319 9 300 9 282 9
318 10 299 10 281 10
317 11 298 11 280 11
316 12 297 12 279 12
less than 316 12 less than 297 12 less than 279 12
Support for processors (HUF per kg):
E class U class R class
Purchase price e Payment Purchase price Payment Purchase price Payment
340 0 321 0 303 0
341 1 322 1 304 1
342 2 323 2 305 2
343 3 324 3 306 3
344 4 325 4 307 4
345 5 326 5 308 5
346 6 327 6 309 6
347 7 328 7 310 7
348 8 329 8 311 8
349 9 330 9 312 9
350 10 331 10 313 10
351 11 332 11 314 11
352 12 333 12 315 12
More than 352 12 More than 333 12 More than 315 13
Payments under this programme amounted to HUF 3,453 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 127
2.3. S UPPORT PROGRAMME  FOR MAIZE FOR FEEDING PURPOSES
2.3.1. State purchase of maize for feeding purposes at guaranteed price
1. Title of the subsidy programme
State purchase of maize for feeding purposes at guaranteed price
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.
4. Background and authority for the subsidy
Decrees 13/1997 (II. 28) FM of the Minister for Agriculture and 95/1997 (XI.28) FM of the
Minister for Agriculture
5. Form of the subsidy
Buying-in of maize for feeding purposes at guaranteed price.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The guaranteed price was HUF 16,500 per tonMaximum quantity that one producer may offer for purchase:  3.2 tons per haPayments under this programme amounted to HUF 99 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 December 1998 to 1 March 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.3.2 Certain measures regarding disturbances on the market of maize for feeding purposes
1. Title of the subsidy programme
Certain measures regarding disturbances on the market of maize for feeding purposesG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 128
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To eliminate disturbances on the market of maize for feeding purposes.
4. Background and authority for the subsidy
Decree 94/1997 (XI.28.) FM of the Minister of Agriculture
5. Form of the subsidy
Buying-in of maize for feeding purposes.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The guaranteed price:  HUF 14,000 per ton
Maximum eligible quantity is 300,000 tonsPayments under this programme amounted to HUF 195 million during the period covered by the
notification.
8. Duration of the subsidy
From 28 September 1997 to 15 June 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.4. S UPPORT PROGRAMMES FOR WHEAT FOR HUMAN CONSUMPTION
2.4.1. State purchase of wheat for human consumption harvested in 1998 at guaranteed price
1. Title of the subsidy programme
State purchase of wheat for human consumption harvested in 1998 at guaranteed price
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 129
4. Background and authority for the subsidy
Decree 58/1997. (VIII.29.) FM of the Minister for Agriculture as amended by Decree 25/1998
(IX.18.) FVM of the Minister for Agriculture and Regional Development; 1/1998 (VII.16.) FVM of the
Minister for Agriculture and Regional Developm ent as amended by 12/1998 (VII.18.) FVM of the
Minister for Agriculture and Regional Development
5. Form of the subsidy
Buying-in of wheat for human consumption at guaranteed price.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The guaranteed price was HUF 18,000 per ton.
Maximum quantity of wheat that one producer may offer for purchase:   2.4 tons per ha
Payments under this programme amounted to HUF 1,665 million during the  period covered by
the notification.
8. Duration of the subsidy
From 6 September 1998 to 10 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.4.2. Income support for certain producers through intervention purchase of their wheat
harvested in 1998
1. Title of the subsidy programme
Income support for certain producers through intervention purchase of their wheat harvested in
1998
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income of small producers.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 130
4. Background and authority for the subsidy
Decree 3/1998. (VII.16.) FVM of the Minister for Agriculture and Regional Development as
amended by Decree 24/1998 (IX.18.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Buying-in of wheat harvested in 1998 to certain producers.
6. To whom and how the subsidy is provided
Producers with a registered area of wheat not exceeding 20.8 ha
7. Subsidy per unit or the total amount
The purchase prices:
HUF 18,000 per ton for Mill-type wheat
         16,000 per ton for EURO wheat
         13,000 per ton for wheat for feeding purposes
Maximum quantity of wheat that one producer may offer for purchase: 2.4 tons per ha, but the
maximum eligible quantity is 50 tons per producer
Payments under this programme amounted to HUF 181 million during the period covered by the
notification.
8. Duration of the subsidy
From 16 July 1998 to 1 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.5. S UPPORT PROGRAMMES FOR MILK
2.5.1. Regulation of the market for cow milk
1. Title of the subsidy programme
Regulation of the market for cow milk
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 131
4. Background and authority for the subsidy
Decree 5/1997. (I. 30.) FM of the Minister for Agriculture
5. Form of the subsidy
 Buying-in of cow milk at guaranteed price6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Guaranteed price: HUF 47 per l for extra high quality milk
     HUF 43 per l for first class quality milk
No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.5.2. Quality-linked support for cow milk
1. Title of the subsidy programme
Quality-linked support for cow milk
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income.
4. Background and authority for the subsidy
Decree 46/1995. (XII .29.) FM of the Minister for Agriculture; Decree 22/1997. (III .14.) FM of
the Minister for Agriculture; Decree 112/1997. (XII .30.) FM of the Minister for Agriculture as amended
by Decree 19/1998 (IX.1) FVM of the Minister  for Agriculture and Regional Development
5. Form of the subsidy
GrantG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 132
6. To whom and how the subsidy is provided
Producers, processors
7. Subsidy per unit or the total amount
Processor: HUF 3 per l for extra hi gh quality milk, HUF 2 per l for first class milk if the purchase
price is at least  HUF 55-58.50 per l for extra high quality milk and HUF 52-55.50 per l for first class
quality milk depending on the season.
Producer: the above-mentioned subsidy per unit, if the purchase price is less than that indicated
above.
Payments under this programme amounted to HUF 4,311 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.5.3. Assistance to the purchase of qualified sheep milk
1. Title of the subsidy programme
Assistance to the purchase of qualified sheep milk
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and to encourage quality production.
4. Background and authority for the subsidy
Decree 101/1997. (XII .15.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
ProcessorsG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 133
7. Subsidy per unit or the total amount
HUF 25 per l for first class quality milk if the purchase price is at least 110 HUF per l.  The
maximum eligible quantity for support is 2 million l.
Payments under this programme amounted to HUF 38 million during the period covered by the
notification.
8. Duration of the subsidy
From 8 January 1997 to 13 August 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.6. S UPPORT PROGRAMMES FOR APPLE
2.6.1. Intervention assistance to the processing of apple in bulk harvested in 1996
Phased out
2.6.2.  Intervention assistance to the processing of apple in bulk harvested in 1997
1. Title of the subsidy programme
Intervention assistance to the processing of apple in bulk harvested in 1997
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 71/1997 (X.11.) FM of the Minister for Ag riculture; Decree 85/1997. (XI .26.) FM of the
Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 3,800 per ton if the purchase price is at least HUF 21,000 per tonG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 134
The maximum eligible quantity for support is: 270,000 tons.
Payments under this programme amounted to HUF 230 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.6.3.  Intervention assistance to the purchase of apples in bulk harvested in 1998
1. Title of the subsidy programme
Intervention assistance to the purchase of apples in bulk harvested in 1998
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 26/1998 (IX.18.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 6,000 per ton if the purchase price is at least HUF 18,000 per ton.
The maximum eligible quantity for support is 350,000 tons.
Payments under this programme amounted to HUF 33,000 during the period covered by the
notification.
8. Duration of the subsidy
From 1 September 1998 to 1 February 1999G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 135
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.6.4.  Interest subsidy on loans received for the purchase and storage of extra and 1st class
fresh apples harvested in 1998
1. Title of the subsidy programme
Interest subsidy on loans received for the purchase and storage of extra and 1st class fresh apples
harvested in 1998
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand
4. Background and authority for the subsidy
Decree 31/1998 (X.2.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Operators of fruit storage facilities
7. Subsidy per unit or the total amount
Interest subsidy of 100 per cent of the basic interest rate of the National Bank of Hungary if the
purchase price is at least HUF 35 per kg.
The maximum eligible quantity for support is: 50,000 tons.
Maximum quantity of apple that one producer may offer for purchase: 10 tons per ha.No payment occurred during the period covered by the notification.
8. Duration of the subsidy
From 15 September to 15 October 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 136
2.7. S UPPORT PROGRAMMES FOR WINE
2.7.1. Intervention assistance for the distillation of wine produced in 1997 in order to reduce
stocks
1. Title of the subsidy programme
Intervention assistance for the distillation of wine produced in 1997 in order to reduce stocks
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To reduce stocks.
4. Background and authority for the subsidy
Decree 66/1997. (IX.26.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Distilleries
7. Subsidy per unit or the total amount
The maximum eligible quantity for support is 200,000 hl.The subsidy is 40 HUF per l  if the purchase price is at least  55 HUF per l.Payments under this programme amounted to HUF 142 million during the period covered by
the notification.
8. Duration of the subsidy
From 26 September to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 137
2.7.2. Intervention assistance for the distillation  of vintage wine of 1998 in order to reduce
stocks
1. Title of the subsidy programme
Intervention assistance for the distillation of vintage wine of 1998 in order to reduce stocks
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To reduce stocks.
4. Background and authority for the subsidy
Decree 28/1998. (IX.29.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Distilleries
7. Subsidy per unit or the total amount
The maximum subsidy is HUF 35 per l  if the purchase price is at least HUF 50 per l.Payments under this programme amounted to HUF 164 million during the period covered by the
notification.
8. Duration of the subsidy
From 29 September 1998 to 1 January 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.7.3. Interest subsidy for the purchase of whit e grapes produced in 1998 in certain regions
1. Title of the subsidy programme
Interest subsidy for the purchase of white grapes produced in 1998 in certain regions
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 138
3. Policy objective and/or purpose of the subsidy
To support the income of small holders.
4. Background and authority for the subsidy
Decree 32/1998 (X.2) FVM  of the Minister of Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Interest subsidy of 50 per cent of the Basic interest rate of the National Bank of Hungary, if the
purchase price is HUF 30 per kg for normal, HUF 36 per kg for high quality grapes.
The maximum quantity that can be offered per ha is 7 tons, in the case of normal grapes the
maximum production area is limited to 10 ha, in the case of high quality grapes to 5 ha.
Maximum eligible quantity for support is 300,000 tons.
Payments under this programme amounted to HUF 170,000 during the period covered by the
notification.
8. Duration of the subsidy
From 2 October 1998 to 30 April 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.8. S UPPORT PROGRAMME FOR BARLEY , RYE, TRITICALE HARVESTED IN 1998
2.8.1 Income support for certain producers through intervention purchase of their barley,
rye, triticale harvested in 1998
1. Title of the subsidy programme
Income support for certain producers through intervention purchase of their barley, rye,
triticale harvested in 1998
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 139
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income of small producers.
4. Background and authority for the subsidy
Decree 5/1998. (VII.23.) FVM of the Minister  for Agriculture and Regional Development
5. Form of the subsidy
Buying in of barley, rye, triticale harvested in 1998.
6. To whom and how the subsidy is provided
Producers with a registered area of these crops not exceeding 20.8 ha.
7. Subsidy per unit or the total amount
The purchase price was HUF 10,000 per ton.
Maximum quantity that one producer may offer for purchase: 2.4 tons per ha but the maximum
eligible quantity for support is 50 tons per producer.
Payments under this programme amounted to HUF 496.46 million during the period covered by
the notification.
8. Duration of the subsidy
From 23 July 1998 to 1 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.9. S UPPORT PROGRAMME FOR POULTRY
2.9.1. Assistance to the production of quality poultry for slaughter
1. Title of the subsidy programme
Assistance to the production of quality poultry for slaughter
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand, to support agricultural income
and encourage quality production.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 140
4. Background and authority for the subsidy
103/1997 (XII.15.) FM of the Minister  for Agriculture as amended by
10/1998 (III.31.) FM of the Minister for Agriculture
59/1998 (XII.16.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers, processors
7. Subsidy per unit or the total amount
Processors: HUF 3 per kg fo r the first class poultry for slaughter, if the purchase price is at least
HUF 168 per kg.
Producers: HUF 5 per kg for the first class poultry for slaughter, HUF 7 per kg for young poultry
for slaughter, if the purchase price is less than HUF 168 per kg, an additional HUF 3 per kg for first class
poultry for slaughter.
The maximum eligible quantity for first class poultry is 320.000 tons, for young poultry for
slaughter 180,000 tons.
Payments under this programme amounted to HUF 1,748 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3-4. OTHER SUPPORT PROGRAMMES
3.1. A SSISTANCE TO STOCK -BREEDING
1. Title of the subsidy programme
Assistance to stock-breeding
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 141
3. Policy objective and/or purpose of the subsidy
To support genetic development aimed at enhancing the breeding and utility value of domestic
animals and to develop the genetic background aimed at producing first-rate animal products.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30. ) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Stock breeders
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 888 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.2. A SSISTANCE TO FISHERY ACTIVITIES
1. Title of the subsidy programme
Assistance to fishery activities
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To facilitate the protection and preservation of fish stocks in waters, to enhance the values of the
fish stocks, to prevent the perishing of fish and el iminate the consequences thereof, and to promote the
execution of tasks connected with water utilisation for fishing and angling purposes.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 142
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Stock breeders
7. Subsidy per unit or the total amount
Payments under this programme amounted HUF 169 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3. A SSISTANCE TO AGRICULTURE AND FORESTRY
3.3.1 Assistance to the preservation or developmen t of biological bases and the modernisation
of related system of qualification
3.3.1.1  Assistance to genetical development
1. Title of the subsidy programme
Assistance to genetical development
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To assist the preservation or development of biological bases and the modernisation of related
systems of qualification.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
ProducersG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 143
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 749 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.1.2  Assistance to the purchase and changes of breeding animals and to the expansion of their
stocks
1. Title of the subsidy programme
Assistance to the purchase and changes of breeding animals and to the expansion of their stocks
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To facilitate the acquisition of high-quality breeding animals and propagating materials.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Stock breeders
7. Subsidy per unit or the total amount
For bull for service: HUF 50,000 per male.
For boar for service: HUF 10,000 to 25,000 per male
For ram for service and he-goat for service: HUF 10,000 to 20,000
For cattle for service: HUF 30,000 per female
For pig for service: HUF 6,000 to 15,000
For sheep and goats for service : HUF 6,000 to 8,000 per female
Assistance for the special and identification ENAR  system of the cattle is HUF 450 per capita.
For sperm of cattle and hog for using is HUF 400 to 500.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 144
Payments under this programme amounted to HUF 2,787 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.2. Assistance to the utilisation of arable  lands in disadvantaged producing areas
1. Title of the subsidy programme
Assistance to the utilisation of arable lands in disadvantaged producing areas
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To assist the agricultural utilisation of lands in disadvantaged regions where the average
golden crown value of the land does not exceed 17 golden crown per ha
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.)  FM of  the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
HUF 2,000 to 3,500 per ha in the case of arable land, vineyards, orchards and gardens;
HUF 1,000 to 2,000 per ha in the case of grassland;HUF 3,000 per ha in the case of fish pond .
Payments under this programme amounted to HUF 4,425 million during the period covered by
the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 145
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.4. Assistance to mending, cultivating and preser ving the quality and the quantity of forests
1. Title of the subsidy programme
Assistance to mending, cultivating and preserving the quality and the quantity of forests
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
/g216 To facilitate afforestation, treatment and cultivation of young forests;
/g216 To reduce costs arising from provisional utilisation of forests, from afforestation resulted from the
change in use of land;
/g216 To contribute to the costs of forest treatment of public interest;
/g216 To contribute to the cost of operation of forest protection measuring and monitoring systems
arising from international obligations;
/g216 To preserve the ecosystem, the ecological balance and physical condition of the forests;
/g216 To contribute to the cost of propagation of forest culture.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Sylviculturists
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 1,413 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 146
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.5. Assistance to the establishment of sylviculturist and co-operative associations
1. Title of the subsidy programme
Assistance to the establishment of sylviculturist and co-operative  associations
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To contribute to the cost of establishment
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Sylviculturist and co-operative associations
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 100 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.4. A SSISTANCE TO GAME HUSBANDRY
1. Title of the subsidy programme
Assistance to game husbandry
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 147
3. Policy objective and/or purpose of the subsidy
/g216 To protect and preserve natural stocks of the species hunted as game and of their habitats;
/g216 To propagate hunting;
/g216 scientific research on game husbandry and the protection of games;
/g216 regional game husbandry planning that is consistent with forestry plans;
/g216 To contribute trophy evaluation;
/g216 To provide services related to research and development if connected to or aiming at the
achieving the objectives under above;
/g216 To facilitate activities in domestic or foreign markets or in the area of marketing if connected to
or aiming at achieving the objectives set out above.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Hunters, Institutions, Companies operating in the field of game husbandry
7. Subsidy per unit or the total amount
The maximum amount of support eligible per appl icant is HUF 5 million, but not more than the
50 per cent of the value of the investment.
Payments under this programme amounted to HUF 719 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.5. A SSISTANCE TO THE PROTECTION OF ARABLE LAND
1. Title of the subsidy programme
Assistance to the protection of arable land
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 148
3. Policy objective and/or purpose of the subsidy
To provide supplement for cultivable land to lower the unjustified decrease of land capable of
cultivation and to enhance different types of utilisation of land capable of cultivation as a sector with
constant changes.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
40 per cent of the costs related to the process of quickening the soil, preserving the quality of
land and the elaboration of projects in this regard.
80 per cent of the costs of research related to the quantitative and qualitative protection of
croplands.
Payments under this programme amounted to HUF 1,506 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.6. A SSISTANCE TO THE CONSTRUCTION AND THE RENOVATION OF BUILDINGS
1. Title of the subsidy programme
Assistance to the construction and the renovation of buildings
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To assist the construction and the renovation of buildings.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 149
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Producers and processors
7. Subsidy per unit or the total amount
Grant
For new construction projects serving
(a) agricultural activities:
- HUF 4,000 per square metre in the case of open or partly open buildings,
- HUF 6,000 per square metre in the case of closed heat-insulated buildings,
- HUF 10,000 per square metre in the case of dairy, wine production and cold
storage facilities.
(b) forestry activities:
- HUF 3,000 to 5,000 per square metre in the case of two-lane forest paths,
- HUF 1,600 to 2,400 per square metre in the case of single-lane paths with
covering
(c) game husbandry activities:
- HUF 6,000 per square metre in the case of closed-space game keeping and small
game keeping
- HUF 4,000 per square metre in the case of hay and feed storage facilities.
(d) fishery activities:
- HUF 200,000 per hectare in the case of fish pond projects.
For renovation projects serving
- agricultural and fishery activities:
- 40 per cent of the cost of a new construction.
Interest subsidy
- 30 per cent of the interest in general
- 20 per cent of the interest in the case of renovation of buildings used for food processing
Payments under this programme amounted to HUF 18,700 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 150
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.7. A SSISTANCE TO THE ESTABLISHMENT OF VINEYARDS AND ORCHARDS
1. Title of the subsidy programme
Assistance to the establishment of vineyards and orchards
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To renew old vineyards and orchards.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
GrantInterest subsidy
6. To whom and how the subsidy is provided
Owners and tenants of vineyards or orchards
7. Subsidy per unit or the total amount
Grants:
orchards:
HUF 36-68 thousand per ha
vineyards:
HUF 448-907 thousand per ha
Interest subsidy:
30 per cent of the interest on loans granted for more than one year.
Payments under this programme amounted to HUF 762 million during the period covered by the
notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 151
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.8. R EGIONAL ASSISTANCE PROGRAMMES
3.8.1. Assistance to the development of disadvantaged regions
1. Title of the subsidy programme
Assistance to the development of disadvantaged regions
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To compensate for regional disadvantages through the support of development projects which
lead to the increase of employment and income.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Producers living in settlements with less than 30,000 inhabitants located in disadvantaged
regions, who use arable land on the outskirts.
7. Subsidy per unit or the total amount
40 per cent of the investment cost or 40 per cent of the interest subsidy on loans received for
investment purposes.
Payments under this programme amounted to HUF 163 million during the period covered by the
notification
8. Duration of the subsidy
From 1 January to 31 December 1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 152
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.8.2. Assistance to the inhabitants of settleme nts with less than 3,000 inhabitants living in
disadvantaged regions
1. Title of the subsidy programme
Assistance to the inhabitants of settlements with less than 3,000 inhabitants living in
disadvantaged regions
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To develop the agro-tourism.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant40 per cent of the investment cost
50 per cent of the publication, training cost
The maximum amount of the support is HUF 2 million per each project.
6. To whom and how the subsidy is provided
Residents
7. Subsidy per unit or the total amount
No payments occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 153
3.8.3. Additional assistance to certain counties in disadvantaged areas
1. Title of the subsidy programme
Additional assistance to certain counties in disadvantaged areas
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To compensate for regional disadvantages.
4. Background and authority for the subsidy
Decree 75/1997 (XI. 31.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers located in Szabolcs- Szatmár- Bereg and Nógrád counties
7. Subsidy per unit or the total amount
Increase by 10-20 per cent of the grant provided under the "3.6 Assistance to the construction
and the renovation of buildings"-programme.
Payments under this programme amounted to HUF 80 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.9. A SSISTANCE TO FOSTER CO -OPERATIVE INTEGRATION
1. Title of the subsidy programme
Assistance to foster co-operative integration
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 154
3. Policy objective and/or purpose of the subsidy¨
To encourage co-operative integration in the field of production, purchase and marketing.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural co-operatives
7. Subsidy per unit or the total amount
Increase by 40 per cent of the grant provided under the "3.6 Assistance to the construction and
the renovation of buildings"-programme. Payments indicated with regard to the "3.6 Assistance to theconstruction and the renovation of buildings"-programme contains payments under this programme as
well.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.10. A SSISTANCE TO THE PURCHASE OF INDIVIDUAL SHARES OF MEMBERS OF CO -OPERATIVES
1. Title of the subsidy programme
Assistance to the purchase of individual shares of members of co-operatives
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To encourage the establishment of competitive farm sizes and to increase non-distributable co-
operative property.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 155
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural co-operatives
7. Subsidy per unit or the total amount
A maximum 5 per cent of the value of individual share or, at most, 7.5 per cent of the nominal
value as recorded on 31 December 1995.
Payments under this programme amounted to HUF 230 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.11. A SSISTANCE TO THE REALISATION OF CERTAIN GOALS OF THE AGRICULTURAL POLICY
1. Title of the subsidy programme
Assistance to the realisation of certain goals of the agricultural policy
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
Assistance to the young experts.
Assistance to foreign training programmes.Assistance to the agricultural research.
To assist the development of the agricultural information network and rural development.
To co-finance the participation in internationa l fairs, the publication of advertising brochures
and the use of geographical indications.
To contribute to the organisation of the National Agricultural and Food Industry Exhibition
and Fair.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 156
5. Form of the subsidy
rant
6. To whom and how the subsidy is provided
Young agricultural experts
Agricultural research institutes
Producers
7. Subsidy per unit or the total amount
Grant, up to 50 per cent of the cost
Payments under this programme amounted to HUF 316 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.12. A SSISTANCE TO COMMON MARKETING IN AGRICULTURE
1. Title of the subsidy programme
Assistance to common marketing in agriculture
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To co-finance the participation on international fairs.
Promotion of Hungarian agricultural products.
Assistance to market research with advanced methods.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30) FM of the Minister for Agriculture
7. Subsidy per unit or the total amount
Maximum 50 per cent of the costs.Payments under this programme amounted to HUF 1,191 million during the period covered
by the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 157
8. Duration of the subsidy
From 1 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.13. A GRICULTURAL RESEARCH PROGRAMMES
1. Title of the subsidy programme
Agricultural research programmes
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To assist agricultural research
4. Background and authority for the subsidy
Decree CXLVI/1997 of Law
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural research institutes
7. Subsidy per unit or the total amount
GrantPayments under this programme amounted to HUF 316 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 158
3.14. A SSISTANCE TO THE JOINT ESTABLISHMENT OF WHOLESALE MARKETS BY PRODUCERS AND
TO INVESTMENTS OF JOINT SALES ORGANISATIONS OF PRODUCERS
1. Title of the subsidy programme
Assistance to the joint establishment of wholes ale markets by producers and to investments of
joint sales organisations of producers
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To encourage the joint establishment of wholesale markets by producers and investments of joint
sales organisations of producers.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Co-operatives, sales organisation of the producers
7. Subsidy per unit or the total amount
Maximum 30 per cent of the investment's cost
Maximum 40 per cent of the interest of bank loans
No payment occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1. F INANCE SUBSIDIES
4.1.1. Assistance given to further agricultural activities
1. Title of the subsidy programme
Assistance given to further agricultural activitiesG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 159
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
/g216 To help producers cover their costs of financing input to agricultural production.
/g216 To help producers cover their costs of financing public warehousing of wheat for human
consumption and maize for feeding purposes.
/g216 To assist agricultural producers suffering natural disasters in repaying their loans.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
40 per cent of the interest on bank loans.Payments under this programme amounted to HUF 13,000 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.2. Government guarantee
1. Title of the subsidy programme
Government guarantee
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To assist the producers in financing their input materials to the production of wheat, rye,
barley and maize.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 160
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Government guarantee
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The amount of the guarantee is equal to the bank loan or, in the case of partial repayment, to
70 per cent of the remaining capital.
No payments occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.3-4.1.4. Assistance to the purchase and leasing of agricultural machinery
1. Title of the subsidy programme
Assistance to the purchase and leasing of agricultural machinery
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To assist the producers in financing their purchase or leasing of agricultural machinery.
4. Background and authority for the subsidy
Decree 109/1997 ( XII. 30.)  FM of  the Minister of Agriculture
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
ProducersG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 161
7. Subsidy per unit or the total amount
25 per cent of the actual purchase price or 30 per cent of the interest on related bank loan.
25 per cent of the leasing fee.
Payments under this programme amounted to HUF 15,168 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.5. Assistance to members of co-operatives in acquiring loans
1. Title of the subsidy programme
Assistance to members of co-operatives in acquiring loans
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To assist members of agricultural co-operatives in financing their costs of input materials.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister for Agriculture
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
40 per cent of the interest on bank loans.Payments under this programme amounted to HUF 800 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 162
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.6. Interest subsidy for loans of current assets
1. Title of the subsidy programme
Interest subsidy for loans of current assets
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To assist producers in financing their costs of input materials.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister for Agriculture
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The maximum amount of the loan can be HUF 100 million.Interest rate subsidy of the  bank loans for at least four years but maximum six years:the interest rate is 50 per cent in the first year,
the interest rate is 70 per cent in the second year,
the interest rate is 50 per cent in the third year,
the interest rate is 40 per cent in the fourth year,
the interest rate is 20 per cent in the fifth year,
the interest rate is 10 per cent in the sixth year.
Payments under this programme amounted to HUF 5,173 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 163
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.2. A SSISTANCE TO THE PRODUCTION OF CERTAIN AGRICULTURAL PRODUCTS
1. Title of the subsidy programme
Assistance to the production of certain agricultural products
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To support the purchase and use of officially tested seeds, fertilisers, pesticides and gasoline
for the production of cereals. The purchase of machinery services is deemed to be purchase of
gasoline.
4. Background and authority for the subsidy
Decree 187/1994 (XII.30.) Korm of the Government
5. Form of the subsidy
GrantThe amount of the subsidy is equal to the costs justified, but may not  exceed HUF 2000 per ha
of sown area with cereals.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 72 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1995
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 164
4.3. A SSISTANCE TO THE RESTRUCTURING OF THE AGRICULTURAL SECTOR
1. Title of the subsidy programme
Assistance to the restructuring of the agricultural sector
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
 (A) To facilitate the organizational and structural adaptation of the agricultural sector.
(1) To provide investment loans by banks for the purchase of assets of agricultural co-
operatives or companies provided that these goods are used by the economic operator for agriculturalor forestry production or for processing or services relating to agricultural and forestry;
(2) To provide investment loans by banks for the purchase of assets of companies
established as a result of transformation of state farms, agricultural complexes or forest exploitations
provided that these goods are used for agricultural or forestry production and that no privatisation loanor other advantage is available for subsidising the interest;
(3) To provide loans of more than one year for the operation of assets referred to under
items (1) and (2) above.
Assets referred to above include the followings: real estates (excluding arable lands and
residential real estates) equipment, machinery, lorries and trucks and other equipment.
(B) To provide additional assistance:(1) To individual producers that have started their enterprises not earlier than one year
before the application for the support under (A) above;
(2) to producers operating in economically underdeveloped regions to the financing of
their development projects.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
ProducersG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 165
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 3,000 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.4. A SSISTANCE TO SOIL MELIORATION AND TO IRRIGATION INVESTMENT
1. Title of the subsidy programme
Assistance to soil melioration and to irrigation investment
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To help landholders and water management associations maintain and improve the fertility of
arable lands and facilitate the security of production.
(A) To assist holders in the financing of their melioration development projects.
(B) To provide additional assistance to holders by financing bank loans of more than one
year granted for soil conservation, country planning and the realisation of water
supply and irrigation facilities.
4. Background and authority for the subsidy
Decree 109/1997 ( XII. 30.) FM of  the Minister of Agriculture
5. Form of the subsidy
Grants (in the case of soil melioration)
Interest subsidy (in the case of irrigation investment)
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 2,117 million during the period covered by
the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 166
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.5. A SSISTANCE FOR PLANTING AND RESTRUCTURING FORESTS AND AFFORESTATION
1. Title of the subsidy programme
Assistance for planting and restructuring forests and afforestation
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To provide assistance to planting and restructuring forests and afforestation.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Sylviculturists
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 3,332 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.6. P AYMENTS FOR RELIEF FROM ENVIRONMENTAL DEGRADATION OF FORESTS
1. Title of the subsidy programme
Payments for relief from environmental degradation of forestsG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 167
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To compensate for losses of income due to the environmental degradation of forests.
4. Background and authority for the subsidy
Decree 109/1997 ( XII. 30.) FM of  the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Owners and tenants of forests
7. Subsidy per unit or the total amount
HUF 500 per gross cubic metre of timber.
Payments under this programme amounted to HUF 261 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.7. R EFUND OF THE CONSUMPTION TAX ON DIESEL FUEL
1. Title of the subsidy programme
Refund of the consumption tax on diesel fuel
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To reduce the tax burden of producers.
4. Background and authority for the subsidy
Decree 31/1996 (II. 27) Korm of the GovernmentG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 168
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Refund of 70 per cent of the consumption tax on diesel fuel.Payments under this programme amounted to HUF 6,100 billion during the period covered by
the notification.
8. Duration of the subsidy
Starting date: 1 January 1996
Duration has not been specified.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.8. A SSISTANCE TO THE PARTICIPATION IN CROP INSURANCE SCHEMES
1. Title of the subsidy programme
Assistance to the participation in crop insurance schemes
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To promote the enrolment of producers in crop insurance schemes.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
ProducersG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 169
7. Subsidy per unit or the total amount
35 per cent of the insurance premium.
Payments under this programme amounted to HUF 3,000 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.9. P AYMENTS FOR RELIEF FROM NATURAL DISASTERS
4.9.1. Payments for relief from natural disa sters affecting plant cultivation in 1995
1. Title of the subsidy programme
Payments for relief from natural disasters affecting plant cultivation in 1995
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To compensate for losses of income due to the drought in 1995.
4. Background and authority for the subsidy
Decree 162/1995 (XII.27.) Korm of the Government
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy of 40 per centPayments under this programme amounted to HUF 2,670 million during the period covered by
the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 170
8. Duration of the subsidy
From 1 January to 31 December 1996
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.9.2. Payments for relief from fireblight disease
Phased out in 1997
4.9.3. Payments for relief from natural disa sters affecting plant cultivation in 1997
1. Title of the subsidy programme
Payments for relief from natural disasters affecting plant cultivation in 1997
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To compensate for losses of income due to natural disasters in the first half of 1997.
4. Background and authority for the subsidy
Decision 2243/1997 (VII.29.) Korm of the Government
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy of 40 per centPayments under this programme amounted to HUF 50 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 30 June 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 171
4.9.4. Natural disasters not covered by insurance policies
1. Title of the subsidy programme
Natural disasters not covered by insurance policies
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To provide relief from damage caused by natural disasters.
4. Background and authority for the subsidy
Decree 109/1997 (XII.30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The amount of subsidy depends on the type of damage, the production loss, the additional costs
related to plant protection and the area affected by the disaster.
Payments under this programme amounted to HUF 2,000 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.10. A SSISTANCE TO THE ORGANISATION OF VINE -GROWING COMMUNITIES
Phased out in 1996
4.11. A SSISTANCE TO THE UTILISATION OF ADVISORY AND EXTENSION SERVICES
1. Title of the subsidy programme
Assistance to the utilisation of advisory and extension servicesG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 172
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To promote the use of advisory and extension services.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
50 per cent of advisory fee,
maximum 50 per cent of the costs of training,
maximum 50 per cent of the costs of the publishing,the costs of the development of advisory information technology.
Payments under this programme amounted to HUF 641 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.13. A SSISTANCE TO THE MAINTENANCE OF RECREATIONAL AND PARK WOODS
1. Title of the subsidy programme
Assistance to the maintenance of recreational and park woods
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To co-finance the costs of maintaining forest faci lities such as botanical gardens, parking lots,
green corridors and hiking paths.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 173
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Operator of forest facilities
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 83 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.14. A SSISTANCE TO TOBACCO HARVESTED IN 1995
1. Title of the subsidy programme
Assistance to tobacco harvested in 1995
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 15/1996 (V.30.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
ProducersG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 174
7. Subsidy per unit or the total amount
HUF 7.7-15.0 per kg according to the type of tobacco
Payments under this programme amounted to HUF 51 million during the period covered by the
notification.
8. Duration of the subsidy
From 7 July 1996 to 13 August 1998.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.15. A SSISTANCE TO POTATOES HARVESTED IN 1996
Phased out in 1997
4.16. M ARKET INTERVENTION RELATING TO EGGS
4.16.1. Market intervention relating to eggs
1. Title of the subsidy programme
Market intervention relating to eggs
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 61/1997 (IX.10.)  FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 2 per pieceThe maximum quantity eligible for support is 50 million.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 175
Payments under this programme amounted to HUF 3 million during the period covered by the
notification.
8. Duration of the subsidy
From 10 September 1997 to 13 August 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.16.2. Market intervention relating to egg production
1. Title of the subsidy programme
Market intervention relating to egg production
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
20/1998 (IV.8.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Maximum HUF 40 per laying hen
Payments under this programme amounted to HUF 161 million during the period covered by the
notification.
8. Duration of the subsidy
From 8 April to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 176
4.17. I NTERVENTION SUPPORT FOR QUALITY PRODUCTION OF GAME BIRDS
1. Title of the subsidy programme
Intervention support for quality production of game birds
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To assist to the quality production.
4. Background and authority for the subsidy
96/1997 (XII.1.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 150 per kg for wild- goose, wild-duck, and pheasantPayments under this programme amounted to HUF 17 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 December to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.18. A SSISTANCE TO BEE KEEPERS
1. Title of the subsidy programme
Assistance to bee keepers
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 177
3. Policy objective and/or purpose of the subsidy
To co-finance medical costs.
4. Background and authority for the subsidy
Decree 76/1997 (X.31.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Bee keepers
7. Subsidy per unit or the total amount
Maximum HUF 1,000 per colony
Payments under this programme amounted to HUF 194 million during the period covered by the
notification.
8. Duration of the subsidy
From  31 October 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.19. A SSISTANCE TO THE ESTABLISHMENT OF EN VIRONMENTALLY FRIENDLY CROP STRUCTURE
1. Title of the subsidy programme
Assistance to the establishment of environmentally crop structure for leguminous crops
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
Soil conservation
4. Background and authority for the subsidy
Decree 109/1997 (XII.30.) FM of the Minister of AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 178
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers who increase the share of the area sown with certain leguminous crops (peas seed,
soya bean for sowing, chickpeas for sowing, horse bean s, lentils, lupin) and in doing so use high-quality
seeds.
7. Subsidy per unit or the total amount
HUF 8,000 per ha (in the case of soya HUF 10,000 per ha)
Payments under this programme amounted to HUF 441 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.20. A SSISTANCE TO THE TRANSITION TO ORGANIC PRODUCTION
1. Title of the subsidy programme
Assistance to the transition to organic production
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To promote organic production
4. Background and authority for the subsidy
Decree 109/1997 ( XII. 30.) FM of  the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
ProducersG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 179
7. Subsidy per unit or the total amount
30 per cent of the cost
Payments under this programme amounted to HUF 59 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.21. A SSISTANCE TO STABILISATION OF THE CEREAL MARKET
1. Title of the subsidy programme
Assistance to stabilisation of the cereal market
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To prolong the period of sale in order to establish better market conditions and prices, to
facilitate access to bank loans.
4. Background and authority for the subsidy
Decree  3/1997 ( I. 18.) FM of the Minister of Agriculture
Decree  109/1997 ( I. 18.) FM of  the Minister of Agriculture
Decree  46/1997 ( VI. 25.) FM of the Minister of Agriculture
Decree  68/1997 ( X.11.) FM of the Minister of Agriculture
Decree  72/1997 ( X.21 ) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy to cover 70 per cent of the cost for producers who placed their crop in public
storage.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 180
Storage support: HUF 10 per ton per week
Payments under this programme amounted to HUF 595 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.22. I NTERVENTION ASSISTANCE TO PRODUCERS OF WHEAT FOR FEEDING PURPOSES FOR SELLING
THEIR CROP
1. Title of the subsidy programme
Intervention assistance to producers of wheat for feeding purposes for selling their crop
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To reduce the surplus.
4. Background and authority for the subsidy
Decree 74/1997 (X. 28.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers who sold their wheat for feeding purposes until 25 of November 1997
7. Subsidy per unit or the total amount
HUF 1,000 per tonPayments under this programme amounted to HUF 119 million during the period covered by
the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 181
8. Duration of the subsidy
From 28 October 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.23. A SSISTANCE TO THE MAINTENANCE AND DEVELOPMENT OF THE STATISTICAL DATA -BASES OF
PRODUCERS ’ COUNCILS
1. Title of the subsidy programme
Assistance to the maintenance and development of the statistical data-bases of producers’
councils
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
Statistical monitoring of the agricultural sector.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister of Agriculture; Decree 109/1997 (XI. 30.) FM of the
Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers’ councils
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 89 million during the period covered by the
notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 182
4.24. A SSISTANCE TO THE IMPROVEMENT OF COMPETITIVENESS
1. Title of the subsidy programme
Assistance to the improvement of competitiveness
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To improve competitiveness
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Grant:  30 per cent of the cost of the export credit insuranceInterest subsidy: 40  per cent in the case of national currency loan, and 30  per cent in the case of
foreign currency loan.
Payments under this programme amounted to HUF 362.4 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.25. A SSISTANCE TO THE REDUCTION OF COSTS RELATING TO THE RENTAL OF AGRICULTURAL
LAND
1. Title of the subsidy programme
Assistance to the reduction of costs relating to the rental of agricultural landG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 183
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To encourage the renting of land.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producer who uses arable land on the outskirts, vineyards or orchards
7. Subsidy per unit or the total amount
10 per cent of the rental fee.
Payments under this programme amounted to HUF 1,251 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.26. A SSISTANCE TO SOCIALLY DISADVANTAGED AGRICULTURAL COMMUNITIES
1. Title of the subsidy programme
Assistance to socially disadvantaged agricultural communities
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To provide assistance to socially disadvan taged agricultural communities for local family
farming.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 184
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Local governments
7. Subsidy per unit or the total amount
50 per cent of the cost of purchasing seed, breeding animals, propagating material.Payments under this programme amounted to HUF 9 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.27. A SSISTANCE TO THE CONSTRUCTION AND MODERNISATION OF RURAL ROADS
1. Title of the subsidy programme
Assistance to the construction and modernisation of rural roads
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
 To enhance the access to local farms.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Local governmentsG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 185
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 200 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.28. A SSISTANCE TO THE SERVICE OF FIELD WARDENS
1. Title of the subsidy programme
Assistance to the service of field wardens
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure the efficient operation of field wardens.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Local governments
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 237 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 186
4.29. A SSISTANCE TO YOUNG FARMERS
1. Title of the subsidy programme
Assistance to young farmers
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To encourage the agricultural activities of young farmers.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Producers under the age of 35
7. Subsidy per unit or the total amount
Grant : 30 per cent of the purchase price or investment cost of buying land, on-farm facilities,
animals, feed stuffs, fertilisers.
Interest subsidy: 80 per cent of the basic interest rate of the National Bank of Hungary on
loans received for the above-mentioned purposes.
The maximum amount of support per farmer is HUF 10 million.
Payments under this programme amounted to HUF 192 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 187
4.30. A SSISTANCE TO AGRICULTURAL EMPLOYMENT
1. Title of the subsidy programme
Assistance to agricultural employment
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To improve the employment in the agricultural sector.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
HUF 3,000 per person employed per monthPayments under this programme amounted to HUF 3,500 million during the period covered by
the notification
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.31. A SSISTANCE TO THE SCHOOL MILK PROGRAMME IN SZABOLCS -SZATMÁR -BEREG COUNTY
1. Title of the subsidy programme
Assistance to school milk programme in Szabolcs-Szatmár-Bereg county
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 188
3. Policy objective and/or purpose of the subsidy
To encourage milk consumption in order to improve the nutritional intake in socially
disadvantaged regions.
4. Background and authority for the subsidy
Decree 23/1998 (IX. 11.) FVM of the Minister  of Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Milk Producers’ Council
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 130 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.32. A SSISTANCE TO THE PURCHASING OF THE REQUIRED AMOUNT OF THE MAIZE FOR FEEDING
PURPOSES
1. Title of the subsidy programme
Assistance to the purchasing of the required amount of the maize for feeding purposes
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To support the storage of purchased maize for feeding purposes.
4. Background and authority for the subsidy
Decree 49/1998 (XI. 4.) FVM  of the Minister  of Agriculture and Regional DevelopmentG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 189
5. Form of the subsidy
Interest subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy: 100 per cent of the basic interest rate of the National Bank of Hungary
Storage support: HUF 15 per ton per week
No payments occurred under this programme during the period covered by the notification.
8. Duration of the subsidy
From 4 November to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.33. A SSISTANCE TO THE STORAGE OF MAIZE HARVESTED IN 1998 FOR FEEDING PURPOSES IN
PUBLIC WAREHOUSES
1. Title of the subsidy programme
Assistance to the storage of maize harvested in 1998 for feeding purposes in public warehouses
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure an adequate level of  domestic supply.
4. Background and authority for the subsidy
Decree 44/1998 (X. 28.) FVM  of the Minister of Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
Grant
6. To whom and how the subsidy is provided
ProducersG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 190
7. Subsidy per unit or the total amount
Interest subsidy of 60 per cent of the basic interest rate of the National Bank of Hungary on loans
which have the stored commodity as collateral.
Storage support: HUF 15 per ton per week.Payments under this programme amounted to HUF 316,000 during the period covered by the
notification.
8. Duration of the subsidy
From 28 October 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.34. W HEAT EXCHANGE TRANSACTION
1. Title of the subsidy programme
Wheat exchange transaction
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure the quality of the wheat to be harvested in 1999.
4. Background and authority for the subsidy
Decree 30/1998 (X. 1.) FVM  of the Minister of Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Producers operating on less than 50 ha are entitled to exchange their wheat for sowing-wheat  at
a value of HUF 8,000 per ha.
Producers operating on more than 50 ha are entitled to exchange their wheat for seed worth of
HUF 3,200 per ha with seed traders.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 191
The transaction price of wheat varies between HUF 13,000 and HUF 18,000 according to
quality.
The transaction price of seed is HUF 32,000 per ton (HUF 36,000 if dressed).No payments occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 October 1998 to 1 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.35. A SSISTANCE TO THE PURCHASE OF WHEAT SEED FOR THE 1998 AUTUMN SOWING
1. Title of the subsidy programme
Assistance to the purchase of wheat seed for the 1998 autumn sowing
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure the quality of wheat to be harvested 1999.
4. Background and authority for the subsidy
Decree 22/1998 (IX. 11.) FVM  of the Minister  of Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Seed traders who are selling quality seed to pr oducers operating on less than 50 ha in the form of
commodity credit.
Additional condition: selling price of wheat seed: HUF 32,000 per ton
Maximum quantity of seed: 250 kg per ha
7. Subsidy per unit or the total amount
Interest subsidy of 100 per cent of the basic interest rate of the National Bank of Hungary on
loans which have the 1999 wheat production of the respective producers as collateral.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 192
No payments occurred during the period covered by the notification.
8. Duration of the subsidy
From the 11 September 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.36. I NTEREST SUBSIDY TO LOANS RECEIVED FOR THE PURCHASE OF APPLE IN BULK HARVESTED
IN 1997 FOR PROCESSING PURPOSES
1. Title of the subsidy programme
Interest subsidy to loans received for the purchase of apple in bulk harvested in 1997 for
processing purposes
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 105/1997 (X.11.) FM of the Minister fo r Agriculture as amended by 52/1998 (VI.26.) FM
of the Minister for Agriculture
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Interest subsidy of 70 per cent on loans received for purchasing apple in bulk.
Payments under this programme amounted to HUF 236 million during the period covered by the
notification.
8. Duration of the subsidy
From 17 December 1997 to 31 Augustus 1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 193
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.37.  I NTEREST SUBSIDY ON LOANS RECEIVED FOR THE PURCHASE OF APPLE IN BULK HARVESTED
IN 1998
1. Title of the subsidy programme
Interest subsidy on loans received for the purchase of apple in bulk harvested in 1998
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 27/1998 (IX.18.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Interest subsidy : 100 per cent of the basic interest rate of the National Bank of Hungary on loans
received for the purchase of apples in bulk.
Payments under this programme amounted to HUF 917,000 during the period covered by the
notification.
8. Duration of the subsidy
From 1 September 1998 to 1 April 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 194
4.38. I NTERVENTION ASSISTANCE TO THE SELLING OF WHEAT FOR FEEDING PURPOSES
1. Title of the subsidy programme
Intervention assistance to the selling of wheat for feeding purposes
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure an adequate level of feed stuff.
4. Background and authority for the subsidy
Decree 38/1998 (V. 22.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producer, who sells its produce to domestic users
7. Subsidy per unit or the total amount
HUF 1,500 per ton
Payments under this programme amounted to HUF 39 million during the period covered by the
notification.
8. Duration of the subsidy
From 22 May 1998 to 31 August 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.39. M ARKET INTERVENTION RELATED TO THE DUCK PRODUCTION
1. Title of the subsidy programme
Market intervention related to the duck production
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 195
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
54/1998 (VI.26.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
HUF 76 per piece
The maximum number of animals eligible is 1,047,000.
Payments under this programme amounted to HUF 50 million during the period covered by the
notification.
8. Duration of the subsidy
From 26 June to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.40. Q UALITY -LINKED SUPPORT TO THE PRODUCTION OF SUGAR BEET
1. Title of the subsidy programme
Quality-linked support to the production of sugar beet
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To improve the quality of production.
4. Background and authority for the subsidy
48/1998 (XI.4.) FVM of the Minister for Agriculture and Regional DevelopmentG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 196
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
HUF 20,000 per haNo payments under this programme during the period covered by the notification.
8. Duration of the subsidy
From 4 November to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.41. E MERGENCY INCOME SUPPORT TO CERTAIN PRODUCERS OF CEREALS
1. Title of the subsidy programme
Emergency income support to certain producers of cereals
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To dissuade producers from offering their produce for intervention purchase.
4. Background and authority for the subsidy
Decree 42/1998. (X.28.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers who disclaim a right of the intervention at guaranteed price
7. Subsidy per unit or the total amount
HUF 3,000 per tonG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 197
Payments under this programme amounted to HUF 5,998 million during the period covered by
the notification.
8. Duration of the subsidy
From 16 July 1998 to 1 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.42. A SSISTANCE TO REDUCE THE SANITARY COSTS OF CERTAIN ANIMALS
1. Title of the subsidy programme
Assistance to reduce the sanitary costs of certain animals
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To reduce the sanitary cost.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.)  FM of  the Minister of Agriculture
Decree 39/1998 (V.22)  FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
pig for slaughter HUF 76 per animal
cattle for slaughter HUF 250 per animal
poultry for slaughter HUF 1 per kgrabbit for slaughter HUF 1,400 per ton
game HUF 40-80 per kg
duck HUF 20 per animal
goose HUF 33 per animal
Payments under this programme amounted to HUF 1,356 million during the period covered by
the notification.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 198
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.43. A SSISTANCE TO THE PRODUCTION OF SOWING SEED
1. Title of the subsidy programme
Assistance to the production of sowing seed
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To reduce the cost of the sowing seed production.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.)  FM of  the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
50 per cent of the cost of qualification
Payments under this programme amounted to HUF 69 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 199
4.44. A SSISTANCE TO THE PURCHASE OF THE REQUIRED AMOUNT OF CEREALS FOR FEEDING AND OF
WHEAT FOR MILLING PURPOSES
1. Title of the subsidy programme
Assistance to the purchasing of the required amount of cereals for feeding and of wheat for
milling purposes.
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure an adequate supply of grain for feeding and wheat for milling purposes.
4. Background and authority for the subsidy
Decree 57/1998 (VII.7.) FM of the Minister of Agriculture as amended by 11/1998 (VIII.7) FVM
of  the Minister of Agriculture and Regional Development
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy of 100 per cent of the basic interest rate of the National Bank of Hungary.
Storage support: HUF 15 per ton per week.
Payments under this programme amounted to HUF 65 million during the period covered by the
notification.
8. Duration of the subsidy
From 7 July to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.45. A SSISTANCE TO THE STORAGE IN PUBLIC WAREHOUSE OF WHEAT HARVESTED IN 1998
1. Title of the subsidy programme
Assistance to the storage in public warehouse of wheat harvested in 1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 200
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To ensure an adequate level of supply.
4. Background and authority for the subsidy
Decree 2/1998 (VII. 16.) FVM  of the Minister  of Agriculture and Regional Development
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy:
60 per cent for wheat for human consumption
100  per cent for wheat for feeding purposes
Storage support: HUF 15 per ton per week
Payments under this programme amounted to HUF 24 million during the period covered by the
notification.
8. Duration of the subsidy
From 16 July  1998 to 20 January 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.46. A SSISTANCE TO INTRODUCE THE HACCP SYSTEM OF QUALITY MANAGEMENT
1. Title of the subsidy programme
Assistance to introduce the HACCP system of quality management
2. Period covered by the notification
1998G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 201
4. Background and authority for the subsidy
Decree 109/1997. (XII.30.) FM of the Minister for Agriculture
6. To whom and how the subsidy is provided
Companies dealing with retail or wholesale.
7. Subsidy per unit or the total amount
Maximum 50 per cent of the costs.Payments under this programme amounted to HUF 2 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January 1997 to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.47. I NTERVENTION SUPPORT TO MAINTAIN THE EU APPROVED LEVEL OF HYGIENE OF PIG AND
CATTLE SLAUGHTERHOUSES
1. Title of the subsidy programme
Intervention support to maintain the EU a pproved level of hygiene of pig and cattle
slaughterhouses.
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
To reduce the costs related to maintaining the EU  approved level of hygiene of pig and cattle
slaughterhouses.
4. Background and authority for the subsidy
Decree 22/1998. (IV.17.) FM of the Minister for AgricultureG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 202
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 252 million during the period covered by the
notification.
8. Duration of the subsidy
From 17 April to 31 May 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5. CORPORATE TAX CONCESSIONS TO ASSIST STRUCTURAL ADJUSTMENT
AND ECONOMIC DEVELOPMENT
5.1. C ORPORATE TAX CONCESSION FOR COMPANIES WITH FOREIGN PARTICIPATION
1. Title of the subsidy programme
Corporate tax concession for companies with foreign participation
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The purpose of this tax concession is to stimulat e foreign investment in domestic corporations.
4. Background and authority for the subsidy
This tax concession is provided for by Section 12, paragraph (1) of Act LXXXVI of 1991 on the
Corporate Tax and Section 29, paragraph (5), subpara graph a) of Act LXXXI of 1996 on the Corporate
Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is provided for in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
The eligibility criteria for qualifying as a co mpany with foreign participation are as follows:
(1) the company’s equity at foundation exceeds 50 million HUF of which
(2) the foreign participation is at least 30 per cent and
(3) more than half of the company’s annual sale proceeds originatesG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 203
(a) from manufacturing of goods or
(b) from “activities of particular importance”.
The “activities of particular importance” are listed in Annex 4 to Act LXXXVI of 1991 on the
Corporate Tax.
7. Subsidy per unit or the total amount
The tax reduction is 60 per cent in the first five years and 40 per cent for an additional five years
period in the case of “manufacturing of goods”. In the case of “activities of particular importance” the
reduction rates are 100 per cent  and 60 per cent, respectively.
On the basis of tax declaration, the tax concession amounted to 37,300 million HUF.
8. Duration of the subsidy
The last year to obtain eligibility for this tax concession was 1993. No tax concession can be
applied for after 2003.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.2. T AX CONCESSION FOR DIVIDEND  INVESTED IN HUNGARY BY FOREIGN SHAREHOLDERS
1. Title of the subsidy programme
Tax concession for dividend invested in Hungary by foreign shareholders
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The scheme is intended to encourage foreign shareholders to invest their dividends in Hungary.
4. Background and authority for the subsidy
The tax relief is provided for by  Section 12, paragraph (5) of Act LXXXVI of 1991 on the
Corporate Tax and Section 29, paragraph(5), subpara graph a) of Act LXXXI of 1996 on the Corporate
Tax and Dividend Tax.
5. Form of the subsidy
The aid is granted in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
If the foreign shareholder of a company invests th e whole or a part of the dividends due to him
(i) to increase the founders’ assets or (ii) in other companies already functioning or being founded in
Hungary, then  the company is entitled to a tax benefit identical with the tax payable for this sum.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 204
7. Subsidy per unit or the total amount
The amount of tax relief was negligible.
8. Duration of the subsidy
No explicit time limit is attached to this tax allowance.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.3. T AX CONCESSION IN ENTREPRENEURIAL ZONE
1. Title of the subsidy programme
Tax concession in entrepreneurial zone
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The purpose of this tax concession is to stimulate investments in entrepreneurial zones. (The
entrepreneurial zone is an administrative unit defined as such by legislation.)
4. Background and authority for the subsidy
This tax concession is provided for by Section 22, paragraph (1) and (2) of Act LXXXI of 1996
on the Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
Companies with head office or premises registered in an entrepreneurial zone are entitled to the
concession which is equal to 6 per cent of the value of the machine, building and infrastructural
investment put into operation and operated at the head office or premises; it may be claimed in the year
of putting the investment into operation.
7. Subsidy per unit or the total amount
As to the amount of support see programme 5.4.
8. Duration of the subsidy
The last  year of  application is 2002.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 205
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.4. T AX CONCESSION RELATED TO REGIONAL INVESTMENTS
1. Title of the subsidy programme
Tax concession related to regional investments
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The purpose of tax benefit is to promote investment activities in regions of high priority (i.e.
where unemployment rate exceeds 15 per cent) and entrepreneurial zones. (The entrepreneurial zone is
an administrative unit defined as such by legislation.)
4. Background and authority for the subsidy
These tax concessions are provided for by Section 21, paragraph (3) of Act LXXXI of 1996 on
the Corporate Tax and Dividend Tax as modified by the Act CVI of 1997 on the Corporate Tax and
Dividend Tax.
5. Form of the subsidy
The subsidy is granted  in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
Companies with head office or premises registered in a region of high priority and/or
entrepreneurial zone that began an investment after 31 December 1995 may receive a 100 per cent tax
concession in those taxation years of a five year period following the start up of the project destined for
the production of goods when their proceeds from the sale of goods increase as compared to the previous
year by at least 1 per cent in an entrepreneurial zone, by at least 5 per cent of the value of investment in a
region of high priority.
In the case of projects destined to establish commercial accommodations the 100 per cent tax
benefit can be applied for in five taxation years after the start up.
7. Subsidy per unit or the total amount
The tax benefit, including the concessions granted under programmes 5.3, 5.8, 5.9, 5.11, 5.12 and
5.13, amounted to 37,100 million HUF.
8. Duration of the subsidy
The last taxation year when the tax concession can be applied for is 2002.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 206
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.5 T AX CONCESSION FOR INVESTMENTS EXCEEDING 1 BILLION HUF
1. Title of the subsidy programme
Tax concession for investments exceeding 1 billion HUF
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The objective of this tax concession is to promote investment activities.
4. Background and authority for the subsidy
This tax concession is provided for by Section 21, paragraph (1) and (2) of Act LXXXI of 1996
on the Corporate Tax and Dividend Tax as modified by the Act CVI of 1997 on the Corporate Tax and
Dividend Tax.
5. Form of the subsidy
The subsidy is provided for in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
(a) Companies, that after 31 December 1995 began an investment for the production of
goods of at least 1 billion HUF may receive a 50 per cent tax benefit in those taxation
years of a five year period following the project’s start up when
- their sale proceeds increase by at least 5 per cent of the value of investment or
- the level of sale proceeds in a given year corresponds to the value calculated on the basis
of successive yearly sale proceeds increase of 5 per cent.
(b) Companies, that after 31 December 1996 began an investment for creating commercial
accommodation of at least 1 billion HUF may receive a 50 per cent tax benefit in those
taxation years of a five year period following the project’s start up when
- their sale proceeds increase by 25 per cent but at least by 600 million HUF compared to
the previous year or
- the level of sale proceeds in a given year corresponds to the value calculated on the basis
of successive yearly sale proceeds increase of 25 per cent or 600 million HUF.
7. Subsidy per unit or the total amount
The total amount of tax benefit was 3,000 million HUF.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 207
8. Duration of the subsidy
The last taxation year when the tax concession can be applied for is 2002.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.6. T AX CONCESSION FOR INVESTMENTS EXCEEDING 3 BILLION HUF
1. Title of the subsidy programme
Tax concession for investments exceeding 3 billion HUF
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The purpose of this programme is to stimulate investments in socially and economically
underdeveloped regions and/or in counties having an unemployment rate of 15 per cent or more.
4. Background and authority for the subsidy
This tax benefit is provided for by Section 21 of the Act LXXXI of 1996 on the Corporate Tax
and Dividend Tax as amended by the Act CVI of 1997 on the Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is granted  in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
Companies with head office or premises registered in a socially-economically underdeveloped
region and/or in a county where the unemployment rate exceeds 15 per cent that after 31 December 1996
began an investment of at least 3 billion HUF for the production of goods may receive a 100 per cent tax
concession in those taxation years of a ten year period following the project’s start up when
- their sale proceeds increase by at least 5 per cent of the investment value, or
- the level of sale proceeds in a given year corresponds to the value calculated on the basis of
successive yearly sale proceeds increase of 5 per cent.
The above tax benefit can only be applied for from the second taxation year and thereafter if the
annual average number of the staff employed exceeds by at least 100 persons the average number of the
staff employed in the year preceding the start up.
7. Subsidy per unit or the total amount
The tax benefit accounted for 0.4 million HUF.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 208
8. Duration of the subsidy
The last taxation year when the tax benefit can be applied for is 2011.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.7. T AX CONCESSION FOR INVESTMENTS EXCEEDING 10 B ILLION HUF
1. Title of the subsidy programme
Tax concession for investments exceeding 10 billion HUF
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The purpose of the tax concession is to promote large investments.
4. Background and authority for the subsidy
This tax benefit is provided for by Section 21 of Act LXXXI of 1996 on the Corporate Tax and
Dividend Tax as modified by the Act CVI of 1997 on the Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is granted  in the form of deduction from the Corporate Tax.
6. To whom and how the subsidy is provided
Companies that began after 31 December 1996 an investment of at least 10 billion HUF destined
for the production of goods may receive a 100 per cent tax concession in those taxation years of a ten
year period following the project’s start up when
- their sale proceeds increase by at least 5 per cent of the investment value compared to the
previous year, or
- the level of sale proceeds in a given year corresponds to the value calculated on the basis of
successive yearly sale proceeds increase of 5 per cent.
The above tax benefit can only be applied for from the second taxation year and thereafter if the
annual average number of the staff employed exceeds by at least 500 persons the average number of the
staff employed in the year preceding the start up.
7. Subsidy per unit or the total amount
The tax benefit accounted for 1,800 million HUFG/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 209
8. Duration of the subsidy
The last taxation year when the tax benefit can be applied for is 2011.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.8. T AX CONCESSION TO PROMOTE STRUCTURAL ADJUSTMENT
1. Title of the subsidy programme
Tax concession to promote structural adjustment
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The purpose of the tax allowance is to ease the burden of structural adjustment and promote
economic development during transition from centrally planned into market economy.
4. Background and authority for the subsidy
This tax benefit is provided for by Section 13, paragraph (1) subparagraph a) of Act LXXXVI of
1991 on the Corporate Tax and Section 29, paragraph (5), subparagraph c) of Act LXXXI of 1996 on the
Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is  in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
Companies are awarded this kind of subsidy by an interdepartmental committee through
tendering procedures.
7. Subsidy per unit or the total amount
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated, according to the following ratio of the inte rests on the loans and credits linked to the approved
project: 30 per cent of the capitalised interest or 18 per cent of the interest accounted as costs.As to the amount of support see programme 5.4.
8. Duration of the subsidy
The tax  benefit may be requested on the basis of credit contracts concluded not later than
31 December 1996.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
Page 210
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.9. T AX CONCESSION FOR BANK CREDITS FINANCING OTHER INVESTMENTS
1. Title of the subsidy programme
Tax concession for bank credits financing other investments
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The scheme was introduced in order to reduce the interest burden in an economy with high
inflation rate on credits financing investments of production, environment protection, tourism and
distribution services.
4. Background and authority for the subsidy
This tax benefit is provided for by Section 13, paragraph (1) subparagraph e) of Act LXXXVI of
1991 on the Corporate Tax and Section 29, paragraph (5), subparagraph c) of Act LXXXI of 1996 on the
Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is  in the form of deduction from the Corporate Tax.
6. To whom and how the subsidy is provided
Companies investing from bank credits in projects of production, environment protection,
tourism and distribution services.
7. Subsidy per unit or the total amount
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated, according to the following ratio of the interests on bank and credits: 19 per cent of the
capitalised interest or 12 per cent of the interest accounted as costs.
As to the amount of support see programme 5.4.
8. Duration of the subsidy
The tax  benefit may be requested on the basis of credit contracts concluded not later than
31 December 1996.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.10. T AX RATE RELIEF FOR FOREIGN INVESTORS
1. Title of the subsidy programme
Tax rate relief for foreign investors
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The programme is intended to create conditions conducive to the establishment and operation of
foreign investors that do not engage in economic activities in Hungary.
4. Background and authority for the subsidy
This tax benefit is provided for by Section 19, paragraph (2) of Act LXXXI of 1996 on the
Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is  in the form of reduced corporate tax rate.
6. To whom and how the subsidy is provided
The preferential tax rate is available for any limited liability company or joint-stock company
incorporated and having its head office in Hungary that is fully foreign owned without discontinuation
and which
(a) has obtained authorisation from the Minister of Finance granting it Customs Free Zone benefits
or, having regard to the fulfilment of the conditions in b) through e), was registered by the
Minister of Finance, and
(b) performs trading activities exclusively between third countries, or provides services exclusively
to other countries, and
(c) in its domestic administrative and court proceedings employs only domestic lawyers and whose
senior officers, supervisory board members and employees, taken separately, are in majoritydomestic natural persons and, furthermore, meets its audit obligations through an auditor
registered in Hungary, and
(d) whose bank account necessary for its operation is kept in Hungary, and
(e) neither itself, nor its owners have any interests in domestic companies or co-operatives, nor do
they maintain any representation office in Hungary, nor there are domestic persons among its
direct or indirect owners.G/SCM/N/16/HUN
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7. Subsidy per unit or the total amount
The foreign investor may take advantage of a preferential 3 per cent tax rate instead of the
normal 18 per cent rate.
8. Duration of the subsidy
No explicit time limit is attached to this subsidy.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.11. T AX CONCESSION RELATED TO INVESTMENTS
1. Title of the subsidy programme
Tax concession related to investments
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The objective of this scheme is to promote development activities by corporations of a certain
importance whose investment projects result in the manufacturing of up-to-date and environment friendly
products and thereby increasing their sales and/or creating new jobs.
4. Background and authority for the subsidy
This tax concession has been provided for by  Section 14/A, paragraph (2) of Act LXXXVI of
1991 on the Corporate Tax as modified by Act CVI of 1997 on the Corporate Tax and Dividend Tax, andDecree 90/1994. (VI.8.) of the Government on Certain Corporate Tax Benefits as modified by Decree
190/1994. (XII.31.) of the Government on Certain Corpor ate Tax benefits, and Section 29, paragraph (5),
subparagraph d) of Act LXXXI of 1996 on the Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is  in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
Application for the concession could be made by a company (a) whose founders’ equity
exceeded 500 million HUF and (b) projected to make investment for at least 200 million HUF that (c)
resulted in yearly sales revenue half of which was realised from the manufacturing of environment
friendly products and/or from the sales of products that have been produced by using modern
technologies and/or employing the results of scient ific research and (d) projected an increase in its
turnover or (e) the creation of new jobs. (Under Section 14/A of the Corporate Tax Act the Government
was granted discretionary power to grant individual tax concessions to applicants that met the criteria
referred to above.)G/SCM/N/16/HUN
G/SCM/N/25/HUN
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7. Subsidy per unit or the total amount
The maximum extent of the subsidy is 100 per cent of the corporate tax due for the first 5 years
and 60 per cent for the second period of 5 years.
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated.
As to the amount of support see programme 5.4.
8. Duration of the subsidy
The provisions of the Corporate Tax Act introducing this scheme came into effect on
1 January 1994 and lost effect on 1 January 1995. The possibility of obtaining tax concession under this
scheme was abolished by Section 13, paragraph (5), subparagraph a) of Act LXXXIII of 1994 with effectas of 1 January 1995. However, particular concessions granted before that data will continue to be
applied until their expiry date approved by the Government and provided that the criteria continue to be
met.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.12 T AX CONCESSION  IN REGIONS OF HIGH PRIORITY
1. Title of the subsidy programme
Tax concession in regions of high priority
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The purpose of this tax benefit is to stimulate investments in regions with high rate of
unemployment.
4. Background and authority for the subsidy
This tax concession is provided for by Section 22, paragraphs (1) and (2) of Act LXXXI of 1996
on the Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is granted  in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
Companies with head office or premises registered in a region of high priority (i.e. where the
unemployment rate exceeds 15 per cent) investing in machines and infrastructure.G/SCM/N/16/HUN
G/SCM/N/25/HUN
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The tax benefit is equal to 6 per cent of the value of machine and infrastructural investment put
into operation and operated at the head office or premises; it may be claimed in the year of putting the
investment into operation.
7. Subsidy per unit or the total amount
As to the amount of support see programme 5.4.
8. Duration of the subsidy
The last year of application is 2002.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.13. T AX CONCESSION TO PROMOTE INVESTMENTS IN PRODUCTION OF EXPORTABLE GOODS
1. Title of the subsidy programme
Tax concession to promote investments in production of exportable goods
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The purpose of the tax benefit is to ease the burden of structural adjustment and promote the
production of goods demanded on all markets.
4. Background and authority for the subsidy
This tax concession is provided for by Section 13, paragraph (1) subparagraph b) and c) of
Act LXXXVI of 1991 on the Corporate Tax and Section 29, paragraph (5), subparagraph c) of
Act LXXXI of 1996 on the Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is  in the form of deduction from the corporate tax.
6. To whom and how the subsidy is provided
Companies investing from bank loans and credits.
7. Subsidy per unit or the total amount
The tax benefit can be made use of in the form of withholding the tax out of the tax calculated,
according to the following ratio of the interests on mid-term loans and credits: 19 per cent of the
capitalised interest or 6 per cent of the interest accounted as costs.
As to the amount of support see programme 5.4.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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8. Duration of the subsidy
The tax  benefit may be requested on the basis of credit contracts concluded not later than
31 December 1996.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.14. T AX RELIEF RELATED TO R&D A CTIVITIES
1. Title of the subsidy programme
Tax relief related to R&D activities
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The purpose of this scheme is to promote research and development activities.
4. Background and authority for the subsidy
The tax relief is provided for by Section 7, paragraph (1) subparagraph t) of Act LXXXI of 1996
on the Corporate Tax and Dividend Tax.
5. Form of the subsidy
The subsidy is  in the form of deduction from the corporate tax base.
6. To whom and how the subsidy is provided
The scheme is available for companies engaged in research and development activities.
7. Subsidy per unit or the total amount
20 per cent of the amount incurred as direct costs of research and development is deductible from
the tax base.
8. Duration of the subsidy
No explicit time limit is attached to the programme.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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6. BASIC CENTRAL TECHNICAL DEVELOPMENT PROGRAMME
1. Title of the subsidy programme
Basic central technical development programme
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The purpose of the Basic Programme is to promote:- the efficient technical developments and innovations which have considerable impact
upon the Hungarian society and economy by the technical modernisation of the country,
- improvement of the infrastructure of research and development.
4. Background and authority for the subsidy
The programme is based on Section 69, paragraph (1) of Act CXXI of 1995 on the Budget of the
Republic of Hungary, the subsequent annual budget  acts and Government Decree No. 98/1996. (VII.10.)
Korm.
5. Form of the subsidy
The support may be in the form of grant, partially or fully refundable grant and capital
investment.
6. To whom and how the subsidy is provided
The support is awarded through tender procedures. Bids may be submitted for pre-competitive
development activity by legal entities, unincorporated economic associations and private entrepreneurs
based in Hungary, as well as by natural persons who are Hungarian citizens and reside in Hungary. The
tender system, the rate and method of funding, the mechanism of decision-making, the evaluation and the
professional and financial control for each individual program is formulated by the Office of National
Committee for Technological Development (OMFB) an d approved by its Council. (The Council is the
highest level policy-making body of OMFB. It functions as an advisory board to the government on the
formulation of the national innovation and technology development policy.) In most cases the grant is
refundable and the gross amount of the aid covers not more than 50  per cent of the costs of the research
and development.
7. Subsidy per unit or the total amount
The total amount was: 6,774,800 million HUF (GGB E). The number of projects subsidised:
7,340.
The maximum net amount per unit was 54 million HUF in 1998.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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8. Duration of the subsidy
No explicit time limit is attached to this programme.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
7. TERRITORIAL DEVELOPMENT FUND
1. Title of the subsidy programme
Territorial development fund
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The Territorial Development Fund is designed to help the development of disadvantaged regions.
Its objective is i.a. to mitigate differences in living conditions, economic, cultural and infrastructural
development; to promote economic restructuring, execution of economic development programmes, job
creation.
4. Background and authority for the subsidy
Act XXI of 1996 on Territorial Development, Act CXLVI of 1997 on State Budget, Decree
31/1998 (II.25.) Korm. of the Government.
5. Form of the subsidy
Grant, reimbursable grant, interest rate subsidy.
6. To whom and how the subsidy is provided
Domestic legal persons, domestic organisations without legal personality, domestic natural
persons.
The aid is awarded through tender procedures.The upper limit of support for job creation, infrastructure, crisis management and regional
development is 30 per cent of the justified costs in case of grant and 50 per cent in case of reimbursablegrant.  The upper limit of support for other purposes is 20 and 30 per cent respectively.
The interest rate subsidy may amount to 30-50 per cent of the interest to be paid.  The measure of
grant and reimbursable grant can be increased by 10 percentage points in entrepreneurial zones and at
settlements where the proportion of ethnic minorities is significant.  The highest amount of grant andreimbursable grant for job creating investment  may not exceed 1 million HUF per employee.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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7. Subsidy per unit or the total amount
The total amount accounted for 2,565 million HUF.
8. Duration of the subsidy
No explicit time limit is attached to this programme.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
8. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT
1. Title of the subsidy programme
Budgetary scheme earmarked for economic development
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The scheme is designed to assist the realisation of national economic and trade policy objectives
by promoting i.a.
- restructuring of the Hungarian industry;
- foreign direct investment in Hungary;
- realisation of industrial parks and innovation centres;
- job creation;
- establishment of quality assurance and certification systems necessary for the introduction of
products into foreign markets;
- regional development;
- missions of business people to Hungary and abroad;
- organisation of international exhibitions, fairs and experts’ meetings in Hungary and abroad;
- development of subcontractors’ network, in particular SMEs;
- financement of  measures to protect consumers.
4. Background and authority for the subsidy
Acts on annual state budgets, Decree 33/1998 (V .22.) of the Ministry of Industry, Trade and
Tourism.
5. Form of the subsidy
The subsidy can be provided for in the form of grant, reimbursable grant and interest rate
support.G/SCM/N/16/HUN
G/SCM/N/25/HUN
G/SCM/N/38/HUN
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6. To whom and how the subsidy is provided
In case of development projects in the manufacturing sector a grant can be provided for up to 20
per cent of the investment costs but not more th an 100 million HUF, except projects over 3 billion HUF
where the upper limit is 200 million HUF.
The upper limit of grant can be increased by 10 per cent in special cases (investments in high
priority regions, industrial parks, entrepreneurial zones and projects for developing subcontractors’
network).
In case of centrally organised trade and investment development programmes and establishment
of quality assurance and certification systems a grant of 50-100 per cent can be provided for.
Interest support is available for programmes improving competitiveness of SMEs.
All kinds of subsidy are awarded through tender procedures.
7. Subsidy per unit or the total amount
Net  costs to government: HUF  9,110 million.
8. Duration of the subsidy
Indefinite.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
9. MINING CONVERSION PROGRAMME
1. Title of the subsidy programme
Mining conversion programme
2. Period covered by the notification
1998
3. Policy objective and/or purpose of the subsidy
The assistance is intended to address major social problems stemming from structural adaptation
in the sector and the need of ensuring progressive a nd orderly reduction of mining. Aid is granted by the
government to specific mining companies on the basis of either the Act on State Budget or within its owndiscretionary power.
4. Background and authority for the subsidy
Annual state budget, Decree 249/1997 (XII.20.) Korm. of the Government.
5. Form of the subsidy
Grant.G/SCM/N/16/HUN
G/SCM/N/25/HUN
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6. To whom and how the subsidy is provided
Coal mining companies.
7. Subsidy per unit or the total amount
The subsidy amounted to 3,960 million HUF.
8. Duration of the subsidy
No explicit time limit is attached to this programme.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
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