Online auctions to sell assets seized by tax office APEH from individuals who owe back taxes or other liability have increased the income of the state budget by Ft 200 million (over €840,000) since January, writes index.hu.
The new online system is seen as a boon to the APEH because of the flaws association with its offline, “traditional” auction, in which collusions between bidders often held down prices. This has meant a jump of nearly 75% for some prices.
During the first half-year that the APEH’s online auction site has been in operation, 237 auctions were held, and the goods were sold at an average of 72% of their estimated value. APEH considers this as a success, and they plan to introduce auctions for real estate, after some necessary regulatory changes are made.
Among the items auctioned, 90% were automobiles. The lot that drew the richest bid was a Mercedes, which brought in Ft 8.2 million, while the most popular item was a Toyota HiAce, which, after 456 registered offers, was sold for 106% of its estimated price. (A similar frenzy attended the sale of a Renault Master, which went for 183% of its estimated price after 454 offers.) Other items offered included various machines and household items, such as furniture, ornaments, paintings, or even china. The cheapest item sold was an inlaid night stand, for Ft 43,000.
Each electronic auction lasts for eight days, and usually there are seven to eight bidders per lot.