It is a commonplace in Hungary that the relatively high level of taxation prevents many investments others are implemented in large numbers on the grey/black market. The examples of last years’ energy efficiency tenders targeting general public provide good examples. The available sources were limited both in percentage (usually 30%) and in total sum as well (often less than 50 000 EUR). Since Value Added Tax (VAT) is 25% in Hungary, it was often easier and feasible not to spend time and effort on an uncertain application but get goods on a grey/black market without VAT. It is a general consensus that there is a strong political and also economic counter interest between conventional or fossil fuel and renewable energy sources. (Bányai, 2010; Ádám and Tóth, 2010) Almost all sources claimed that there is a strong opposition of strengthening or helping Renewable Electricity Standard (RES) to grow among those circles interested in fossil fuel.
I hope renewable energy will become the only possible energy source for developing in every single politicians mind in the future.
Ádám, B., Tóth L., HGD Ltd. personal communication on 3 March, 2010
Wikipedia. Market penetration of district heating, http://en.wikipedia.org, last modified 10 Marc, 2010.
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