By Gergo Racz
BUDAPEST--The operator of Hungary's international airport in the
capital, Budapest Airport Zrt., said Friday it is initiating legal
proceedings to challenge a recent increase in local taxes.
Budapest Airport, majority owned by Germany's Hochtief AG
(HOT.XE), said the local government's decision earlier this year to
radically increase taxes paid for land usage is unfair,
unconstitutional and that it would be seeking reparations at the
Constitutional Court.
The company said the new tax regime would require paying 2.25
billion forints ($9.8 million) to the city this year, more than
three times the amount it paid last year.
Budapest Airport is still suffering the effects of Hungary's
national airline Malev Zrt. going bust in February, as the airline
generated around 40% of the airport's revenue. Budapest Airport has
already laid off staff and postponed investments in response, and
raised suggestions to the government to improve its position.
"The proposals were on the one hand rejected, and on the other
answered through further raising the plot tax, so the company
operating the airport now has no alternative but to seek legal
means," said Budapest Airport Chief Executive Jost Lammers.
Write to Gergo Racz at gergo.racz@dowjones.com