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STAT
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DECREE NO 46 OF 10 AUGUST 1r55 OF THE HUNGARIAN CGUNCIL
OF NIITIISTERS ON T1IE DISTRIBUTION OF PRICE REGULATORY
JURISDICTION
~a~_ Kozlo~v-, No 85
Budapest, 10 Aug 1955
Paragraph 1
1. P;?ice regulation consists of the establishment of prices for products
and of fees for aervices. Procedure in connection with price regulation is
also covered in this decree.
2. Price regulation does not include t}ie establis}unent of wages, in-
novation fees, real estate prices, agricultural rents, taxes, and prices for
objects of art.
3? Also excluded from the provisions of this decree are transportation
postal, telegraph, telephone, and similar fees, which are subject to inter-
national agreements.
4. In disputes concerning price regulation the Council of I~ nisters will
render decision.
Paragraph 2
Under this decree, "price" or "service fee" means compensation expressed
in terms of money. Consumer goals are products which are marketed through
the retail trade. Products which do not fall in the category of consumer
Boods are considered equivalent to means of production.
Paragraph 3
In matters pertaining to price regulation the following authorities
have jurisdiction:
1. Cour, of A$nisters
2. President of the National Planning Office
3? Individual rninisters
4. Local price regulating authorities
II. Jurisdiction of Council of 19inisters
Paragraph 4
1. T}ie Council of DLinisters:
a. Determines the general princip;_; governing price policy and
the special principles governing changes in the price of means of production,
agricultural products, consumer goods, and services.
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STATI
b. Determines and approves, in case oi' a general change in the price
level or price system of producer and consumer prices, the prices affected,
together with all price lists.
c. Determines and approves the prices or fees of products or services
enumerated in Appendix No 1.
2. Approval of the Council of tfinisters is required for a change in
the prices and fees of consumer goods and services rendered to the general
population, with the exception of the prices of industrial and agricultural
goods produced by local enterprises and not included in the national unified
price list.
III. Jurisdiction of President of National Planning Office
Paragraph 5
1. The President oi' Che Iational Planning Office:
a. Prepares and submits to the Council of hfinisters reconunendations
pertaining to the principles of national price policies.
b. Draws up and submits to the Council of 1?Iinisters recouu~endations
pertaining to general changes in the prices of means of production, agricul-
tural products, and consumer goods and in the fees of services.
c. Controls the implementation of regulations concerning price-
political principles and of price regulations and also centrally directs the
control of the application of prices.
d. Submits to the President of tl~e Council of hfinisters comprehensive
reports pertaining to the implementation oi' price-political principles and
price regulations, as well as to price trends.
e. Publishes the miified price list.
f. Renders opinion on recommendations pertaining to the prices and
fees of means of production, agricultural products, and services falling
under the ,Jurisdiction of the Council of hfinisters.
g. Renders opinion on and submits to the Council of Afinisters
recommendations prepared Uy the individual ministers concerned pertaining
to the retail prices of consuner goofs falling under the jurisdiction of
the Council of ffinisters.
2. The President of the National Planning Office determines:
a. Prices of such new means of prcduction and new consumer goods,
as well as the fees of such services and the prices (minimum, maximum, and
average prices) of such agricultural products, as are enumerated in Appendix
No 2.
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b. Prices for all products or services for which a state subsidy of
over 1C0,OOO forints per product per annwn is necessary.
c. Prices of products not marketed for tl~e civilian population
but serving only tl~e requix?ements of the armed forces, after consultation
with a special conunittee.
3? Approval by the President of the T~ational Planning Office is re-
quired:
a. For the publication of principles governing the calculation
of prices in the various branches of the national economy.
b. For tl:e determination of prices for all imported products the
planned value of which exceeds one million foreign exchange forints per year,
excepting the prices of products imported under barter agreements.
c. I'or the change of producer prices of means of production,
consumer goods, and services listed in the unified products price list, ex-
cepting products falling under the jurisdiction of the Council of Ministers
as per Appendix No 1.
4. The President of t}:e National Planning Office reviews the prices of
products falling under file jurisdiction of the various ministries before
the publication of the price lists and is authorized to change the producer
prices, provided such action is necessary in t}:e interest of the national
economic plan or the maintenance of tl;e price level.
5. The President of the National Planning Office renders decision in
disputes arising between ministers in connection with price regulation,
excepting disputes pertaining to the prices of products and services which
fall under the jurisdiction of the Council of Ministers.
6. In case of a conflict of opinion between the ministers and the
President of the Iational P]annirg Office which cannot be resolved by '
negotiation, decision is rendered by the Council of Ministers.
Paragraph 6
1. The President of the Rational Planning Office proceeds in matters
pertaining to price re~*ulation after consultation with the ministers
concerne3 as follows:
a. In determining the consumer price, the minister supervising
the industry concerne3 and the rzinister supervising trade in the product
concerned.
b. In determining the prices of means of production, the minister
supervising the chief consumer industry of the nreduct.
c. 7~; deter;r.icing the prices of agricultural products Lhe hti.nister
of Agriculture, the bhnister of Produce Collection, and the nunisters super-
vising the collecting enterprises.
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d. In respect to exported products tiie bL'nister of Foreign
Internal Commerce and the President of the,Directorateeof~thetSZOVOSc, of
(Szovetkezetek Orszagos Szoretlcazete, National Association of Cooperativer~.
f. In rendering decisions on disputes concerning prices, the
ministers concerned.
g. In determining producer prices, the minister exercising ouper-
vision over the producing industry in question.
h. In connection with a change in producer prices, the minister
who determined the price in question before it was included in the price
list.
2. In the event That as a result ni' price regulation the planned
financial result oi' either the turnover tax pr ~f a branch of industry
should be changed, or the amount of equaliza-~ion resulting i'rum foreign
trade should be increased, the Fresident of tl~e Idationel Planning Office
will proceed in cooperation with the .~;inister of finance and .the Minister
of Foreign Trade.
Paragraph 7
1. The President of the National Planning Office is authorized to issue
detailed instructions with a view to w~ifyir~g price regulation and control.
2. ;Jith the concurrence of tk~e Council of Ministers, the President of
the National Planning Office is authorized to modify the distribution of
price regulatory jurisdiction among the President oi' the National Planning
Office, the ministers, and the local price authorities.
IV. Jurisdiction of the Ministers
Paragraph 8
1. ~,uestions pertaining to the prices of tl~e products of the various
enterprises or institutions are the responsibility of the various ministers
under whose jurisdiction these enterprises or institutions operate.
2. In the event that supervision over the enterprise or institution
is not exercised by the minister who has jurisdiction over the prices of
the products under the present decree, the questions arising must be settled
in cooperation with the minister concerned, according to Appendix No 3.
3. In the event that certain products or services of enterprises
operating under the jurisdiction of the SLOVOSZ are rot subject to the
authority of the local price regulating authorit+es, questions concerning
prices will be settled Ly the Minister of Light Industry in cooperation
with the minister concerned according to Appendix I4o 3, provided that the
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products or services in question are not subject to the jurisdiction of the
S7AVOSZ. In connection with products and services in the field of the food
industry, questions will be settled by the Minister of the Food Industry.
4. As regards application of the provisions of the present decree, the
President of the Directorate of SZOVOSZ, the Rational Physical Education and
Sports Committee, the National Geodesic and Cartographic Office, the National
Forestry Chief Directorate, the National Geological Chief Directorate, and the
National Publications Chief Directorate are considered to have equal authority
with the ministers.
1. Under their price re;;ulatin;; authority, the individual ministers:
a. +7111 prepare and, witi; tine conccrrence of the Minister of Finance
and the approval of the President of ti:e National Planning Office publish
price calculation directives and specific instructions for the various branches
of industry.
b. Will see that the price regulating decrees are implemented, in-
cluding decrees and re~,vlations issued by the Council of Ministers and the
President of the Plational Plannirt; Office.
c. 4!111 keep a record of official prices and service fees in their
respective fields which have not been included in price lists or have not been
published.
d. 47177 supervise ad'nerence +,o price regulations.
2. The individual ministers are also required to prepare recommendations
for price regulating problems wtrir_h concern their respective fields but are
assigned to the jurisdiction of the Council of Ministers or of the President
of the National Planning Office under the present decree. Such recommendations
are to be submitted to the President of the National Planning Office, even in
the event that price regulating problems pertaining to ttia jurisdiction of the
Council of Ministers are concerned.
3? Prices which are not assigned by the present decree to the jurisdiction
of the Council of Ministers, the President of the National Planning Office, or
the local price regulating authorities are determined by the individual min
isters. Thus the ministers have authority to determine:
a. The prices of individually [not serially] manufactured means of
production and the consumer prices of new products, with the exception of the
products listed in Appendixes No 1 and 2.
b. The producer prices of new consumer goods, with the exception of
products listed in Appendixes Idc 1 ant 2.
c. The prices and fAes, respectively, of agricultural products and
services, with the exception of those listed in Appendixes No 1 and 2.
d. Local and temporary prices within the minimum, maximum, and
average prices enumerated in Appendixes Ido 1 and 2.
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prices, with the exception of the consu~erLL,!?horizc~i to change consumer goods
products falling under tre jurisdiction of theclocal industrial and agricultural
ministers also have no authority to change the national iunifiedorities. The
of industrial products and services, ~ Producer prices
1. In addition to his jurisdiction in price regulation affecting the
local industry, the Minister of Light Industry;
a. Will determine, in ccoperation with the minister concerned accord-
ing to Appendix No 3, the producer prices of new means of production anc' of new
producer goods, provi~ieri that these price; do not fall within the price regulat-
jurisdiction of the _o; :a pri^.e ncY.:;orities.
b. ~?lill deter:rinc? tt:~. ices for industrial services and repair work
performed by local indcstr? provide3 such tees are not assigned to the price
regulating jurisdiction oi' ct!-.er authorities.
c. 'v;i11 systematically supervise the price regulating activities of
the local price authorities in respect to producer prices.
d. Sdill rescind or modify prices es?ablished b;~ local authorities, or
order tt;e local authorities to establish new prices.
lowin3?arerincludedlin thetfieldhofalocalaindustrytinsofareas theyearetnotfol-
asaigned to the jurisdiction of the ,finis ter of City and Town Economy accord-
ing to Appendix PIo 3;
a. Industrial and service national enterprises operating, under the
supervision of the local councils, with the e.%ception of enterprises in the
fields of the building, road construction, road :maintenance, electric power
production and suPP1Y: and food and restaurant industrial enterprises.
b. Artisan. cooper ;trues, with the exception of cooperatives in the
building industry.
c. Private :,;mill ln,lustry, wi1:h the exception of the building and
restaurant inius*.ries.
d. The home craft incu.^,trf.
The ministers supervising the functional organs (directorates, departments)
of the executive committer-.s of the local councils possess the same jurisdiction
in respect to the prices of tl:e pro?:lucts curl services enumerated in Appendix
No 3 as the N,inister of ~1trC Irdustiy in respect to local industry.
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Conswner prices wi.Ll be. establisheu by the 1?;inister of Internal Commerce.
He will also prepare recomrr_=ndat.ion^, on consumer prices falling within the
jurisdiction of the Cou^.cil of Ministers or the Prc:;ident of the National Plan-
ping Office, with the exceptLnn of concwner prices which come under the ~uriadic-
tion of another minister accordir:~; tv Appendix IIo j? In addition, the Minister
of Internal Commrerce ~;iLl prepare reco:rmendationr, in cooi;eration with the Pres-
ident of the i3mct;orate of 3[?OV^SZ, on the establistunent or modification of profit
keys ror conm+erce.
In addition to hi;; price ,,~-?~,lcain-~ re ;possibilities, the Iinister of
Transportation and Postal -1ff;::ri, ,all ::1so p+:blish the national transportation,
postal, telegraph, teLephcn~, rr.. ;;;dio t~riff,? In case of a modification of
these tariffs on a nati~.;;+: ,:i,. ; , ,.1? c:Lprovel b~~ the Council of ;'in+^,+?rs is
required, and in case oi' -+ c:i:ua~e,
Planning Officu is u! re Y, ' ''I'I'roval b;r the Fresident of the National
i :> I+avided in t;he present decree.
1. Only the mini:,tcr. c'.^.e icnut?
minister is authorized to si;a ariy 3ecreenortrecomR;endationnineconnect on with
price regulation.
2. Only the minister or his deputy is authorized to sign recommendations
in connection with disputes arising oct of price regulation and requiring the
decision of the Presider.*, of the IJatiorai Planning Office, provided that the
value of the annual production exceeds 2 7~1111on forints.
i'~'::':~` 1i+il lj
1. In the event tt:~t +:.:c yr :;ore r;isi:;L~+rs are interested in the deter-
mination of the price of , .~r ;r;_r. ;:r_.a:5 of production, consa?ner good, or
agricultural product, or ir. 6:;r fee of a certain acrvi.ce, the minister primarily
concerned will, in cooperation ?.,ith the other interested minister or ministers,
render a decision or 1:rc,?.?ire a >>^o;xa~ndation.
2. The term "intcre:;tc-.i:ainiotcr," used i.n the preceding sentence, applies
to the following ministers in au;iition to those :numerated in Appendix 3:
a. The t?linister or Finance ir, all cases where the price regulation
affects the planned financial results of turnover taxes or of an individual
branch of industry or increases the amount of price equalization in connection
xi'th foreign trade; also when the near price necessitates the introduction or
iihcrease of state subsidy.
b. The :ninist~.r oxercisi.n~ :;ui;e:visien u~i?certain products ;rliidi axe
consumed largely oy the ur.:,??L Forces n' by a state administrative organ, a
state institute, or a state cn*,erpr ac.
c. The minister sup?.rvici^~ the proi::cer prices of certain products
in respect to the consumer price:; of tue sar.+e products.
STAT
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d. The h',Snister oi' Foreign Commerce in respect to goods produced for
e. The Minister of Produce Collection in respect to the official prices
of all agricultural products.
3? The. Minister of Auilding must be consulted in establishing the prices
and fees, respective],y, of road, tunnel, sari bridge construction and maintenance
(with the exception of the prices and maintenance fees of iron bridges), and
prices of river regulating wo*ks, waterworks, and construction pro,Jecte (except-
ing iron structures and machine equipmentl,
k. In the field of loc,.l inriuatrinl products and services, insofar as
these are not covered by Appci~dix fie 3, action will be taken by the Minister of
Light Industry in cooperation with other interested ministers.
V. Jurisdiction of Local Price Authorities
The local price authorities are: the Audapest City Council, the megye
(county) councils, and the functional organs of the executive committees of
the councils of cities invested with me~q rights.
1. Action in connection with the establishment of prices is taken by
the local price authorities in the event that the price regulation in question
is only of local importance ant no action has been taken by the President of
the National Planning Office or the minister concerned. The scope of matters
of local importance is defined by special re?oulations.
2. The regulation of prices of pralacts marketel by wholesale enterprises
cannot be considered o; local importance, unless the President of the National
Planning Office exempts certain products from the re~+.lation.
3? The local price authorities arc: responsible for the supervision of
price regulating tasks which are legally essigned to them.
Paragraph 18
1. The local price aathorities are not permitted to issue a regulstion
or take action contrary to an order issued by the Council of Ministers or the
President of the National Planning Office.
2. The tariffs of loyal transportation enterprises must be submitted by
the local price nuthoriti+ to the tinister of L'ity and Town Econorgy for approval.
Such tariffs are not valid without the joint approval of the Ministers of Trans-
portation and Postal Affairs sad o: City and Towfi Econoirp?.
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yI? Publication of Pri~~
Para,;raph 19
National Plannire~atin? decrees rand orlers issued by the Pres'.dent of the
symbol qg, ~ Office and the individual ministers must be desi
granted by the
Fara3r~ph ?0
1. Price re?'n~latin~; 'iecrees
National planning Office nr the ``n" orders issued by the Fresident of the
Magyar Kozlor;y (Official '?`i~viau_], ministers x111 be published in
Bulletin P ~.azette) anti Terv;*azdasa
res ectirely, gi Ertesito (Planned Economy
2? If a price re_uln;,rr~; .^.rder c.on~~~rns Oral,/ a small number of
or enterprises operatir.~ cn ~:r ;,l;, ,;urisiiction of a sin
consumer goods, it is -?, enterprises,
no iron'ater/ *o P?blish the ordersin ministry, or seasonal
Tervgazdasagi Ertesito?
P,u a~raph 21
The orders of local price authorities :rill be published b
went.
Y public announce-
VII. Price Control
Para~raPh 22
1? Price coni:rol actisities include:
and of adherenceetoloffir_~thcl~i~rplementation of price-political
2" ?1cuLi*.ion provisions. Principles
b. Supervision of Cite pra3uction cost factors which form the basis
of cost calculations.
^ Supervision of thy' pr ~ctfcal _l,plication of official
price regulations.
prices and
2. Production cost factors i~earin.~ on the r_alcu7.ation of
supervtsed either by a review oP .the. precalculntl
prices x111 be
on or of Liie post-calculation.
3? Supervision of the ;~pplicat:ion of official prices includes means of
Production, agriculr,~?~ pra;:ucts, consumer ;;oo,:is, and services.
F'ara~rcpt; -3
The Fresident of the iictianal Plc.nni.n~ n ,f;ce will supervise:
a? The wor!c cf tae iniividun.l t;iniatries, to sec that the
price regulations and pric~..political principles.
Y observe
b? The application oP official prices and i'ees ir..3eneral.
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1. E,.ch minister concerrei ::ill supez^:is~::
a. The conform; _??: o'' pries ::ith price-political principles and
aound price proportion::.
b? i'he accur~c;r a.1 -%e; or.:entation o~' calculations submitted by the
various enterprises anQ ceop~.:r~!aces for ti;e ;arpose of price re;;ulation.
c? The accuracy: of :;;.o p;.c u~tio:: cost Factors t:hich foT?m the basis
of price re.u].ation or ?.~cre: ....: L~ ,'. ;i _,? ?n.iculati.ons sub:riG.;e~1,
2. The Liinister of : i:wzv,. ]:; ::].cc ~ut!wrized to supervise the accuracy
of price calcul_:':i.on~ ~..._ ? nr;,:r;.ir;, c. ~+; ~?,.?:or:.
1. The supezvisior, oC ;;I., new.~l :_ppli.cation of producer prices is the
responsibility of the minisicrs concerned.
2. Supervision of the official prises paid for ar,;ricultural products
fella within the 'uris?fiction of the i'_iristcr of Produce Collection, even if
the collecting enterprise :: ~ oier:rte uruier ~lre supervision of another ministry.
1. Systematic ,nd constani; oup?_rvision of the sound application of con-
sumer prices is e,.crciced ov the ;fini.ate:r of lntrr,?nal Co*u:erce and the local
price authorities inrcu h the ,,tc Co;:u~erc?e inspectorate (Allami Y.ereskedelmi
Feluiyelose~;) .
2. Supervision c' ecnsrescr ri.c^_:: _neL,:a.a seei.n,~ that:
n. Price; are d.isple:yed .'or publir_ i.nsnect.on in all stores and sales
b. Displa;.?ed price.: roni'cr..; ?,. i i.h oi.iicial prices.
c. Prices confor;n w:iti, cc;lit;;.
d. A produc? is not withheld ."ra:: the market.
Paragraph 27
In implementing their ;rice re;,:Ld:;m~ responsibilitiea, the President
of the National Plannin; Gi'!'ic::: and the i.ni;.:?ic!ua1 ministers are authorized to
take the following actions:
a. To regcest the sots;:+ssion of .iocmaentation by arty enterprise, in-
stitute, or person.
b. To review by dele3at;es the records of enterprises anc question the
managers and employees of cntcTprises.
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c. To order certain branches of industry or enterprises to keep
samples and records for a stipulated ler~th of time.
d. To keep specific records.
e. To direct producers, stores, etc, ns to the manner of displaying
prices.
The local price authorities perform supervisory work identical to that of
the ministries in respect to the products falling withing their ,jurisdiction.
1. All enterprises, institutes, ^nd irntividu:~s ~rP required to give
full information to price regulating authorities on request.
2. Responsibility for the accuracy of data submitted to price regulating
authorities rests with the submitting enterprise or pereon.
VIII. Requests, Expert Upinions
1. All requests pertaining to price regulation are to be submitted to the
minister who supervises the producing enterprise. Requests concerning the ,
prices of goods produced by the local industry are to be submitted to the local
price authority.
2. If submission of calculations or other data to the price authority is
mandatory, these must be submitted to the minister concerned.
1. Expert opinion in matters pertaining to rice re
courts or other authorities x111 be given by the ministergconcernedegaccording
to Appendix No 3.
2. Expert opinion is rendered by the local price authorities on matters
pertaining to their ,jurisdiction.
The President of the Central Statistical Office will ]teep price trends
under constant observation. He xill notify qunrter]y the President of the
Council of Ministers, the President of the National Ptannt,~q Office. and the
.e ~!:
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Minister of Fir??:nce of all price devclopmente; the :;mister of Produce
Collection on the official and free market prices of agricultural products;
and the 1?finister of Internal Cosunerce on the d.:velopment of consumer prices.
The individual ministries will supply the Central Statistical Office with
data pertaining to price statistical work.
1. Violation of the present decree is subject to n penalty of up to
500 forints, unless the violation falls imdcr the provisions of Decree 8,800
of 28 July 191+6 of the Counci], of Ministers or of Decree 411th the Force of Law
No 4 of 1950.
2. Legal procedure for violations of this decree is the responsibility
of jaras or city councils.
The courts are required to transmit copies of judgments in cases of prof-
iteering to the price authority concerned on the latter's request.
XI. Miscellaneous Provisions
The following regulations are hereby rescinded;
1. No 8? of 21 hfarch 1950 of the Council of Ministers, No 10,074 of
1 April 1950 0. T. A. H., PIo 10,074/89 of 11 Mqy 1950 0. T. A. H. No 10 0 4
of 5 August 1y50 0, T. A. H., No 132 0: ,5 ii:y 1950 of the Council~of Ministers,
and PIo T2 of 16 March 1951 of the Council of I?:inisters;
2. No 89 of 15 April 1951 of the Council of Ministers on the regulation
of royalties on textbooks and technical books;
3? No 500,005 of 16 February 1952 O.T..A.H, on the price-regulating
jurisdiction of the 1?~3nister of Finance;
4. Order No 2,800-6-1954 o.T.A.x. (see Tervgazdassagi );rtesito, Vol II,
No 5) and Decree No 500,340/1951 A. H. on the modification of price-regulatory
jurisdiction;
5? PIo 500,170 of 9 Novc7ber 1990 O.T.A.H, on miscellaneous matters pertain-
ing to price regulation.
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List of Rew hntorial::, Industrial and Agricultural Products, and Services,
,the Prices of llhich Are Determined by the Council of i?]inisters
I. Raw lnterials, Industrial Products
1lectric power, coal, crud- oil, pig iron, iron ore, cement, bricks of
small dimensions, scrap iron,caL?inated alumina, aluminum ingots, tractors,
motor bicycles, trucks, harvesting-threshing combines, sulfuric acid, caustic
soda, coke, nntural rnd s;,?ni;hetic rubber, cotton, raw anti washed wool, hides,
cellulose, newsprint, refined ;.lcohol, bread, si:Uar, and fnt.
II.. Agricultural Products
1. Prices due to praicccr cooperatives and independent peasants:
a. Prices on rt:m:.atoty ~leli:eries.
b. Liini:mtm, ,aaximum, and avera3e prices for the contractual deliveries
of the following products: wheat, r?e barley, cats, corn, sunflrnaer seed, edible
fall potatoes, alfalfa seed, wine, musk, slac~iaer hogs, beef cattle, poultry,
milk, and ergs.
III. Services
Comprehensive chntz