Gov't eyeing law to bar foreign-plated cars

The government is reportedly preparing a new law that would compel Hungarian citizens and foreign residents to register their automobiles with local license plates.

The Hungarian Vehicle Importers Association (MGE) is proposing that the government introduce the so-called "Austrian practice" of vehicle registration in Hungary. In that country, owners of foreign-registered cars have to prove that they do not live in Austria. Car owners who live in Austria can drive foreign-registered cars for only one month - and for one additional month if a temporary waiver is granted - with violators subject to an investigation by the tax authorities.

In Hungary, the most popular foreign license plates are from Dunajská Streda, Slovakia but Indonesian and American lciense plates can also be seen these days. These typically belong to luxury cars, which adds up to the state losing billions of forints in revenues. Often, even cars purchased in Hungary are then registered in another country so that registration fee or VAT do not have to be paid in Hungary. According to current regulations, it is the task of Hungarian authorities to prove that the owner lives in Hungary.

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