Hungary is reducing the VAT for food
The government of Hungary has decided to make a VAT reduction on food in order to increase the consumption of some products. According to the Minister of Agriculture, Dr Sandor Fazekas, a goal is to tax the most important foodstuffs with the lowest possible levels of VAT.
The decision comes after 8 years of higher taxation on food introduced by the former left-wing liberal Government who has increased the VAT to 27%.
"One of the main aims of the civil government is to increase domestic consumption by providing people with cheap and affordable food and to bring more Hungarian food from a high quality, healthy environment to the family table. Accordingly, in recent years we have reduced the VAT on a large number of basic foodstuffs, including reductions of the level of VAT to just 5% on pork and poultry meat, fresh milk and eggs", said the Minister.
Since the beginning of this year, the VAT on fish and pork offal will decrease from 27% to 5% allowing people to make an important economy in their family budgets. Also, there is an advantage for the producers who will benefit from a higher rate of consumption.
The current reduction in the VAT rate of fish products and the recently introduced Hungarian Quality Fish (MMH) trademark can also contribute to the further growth of domestic fish consumption, explained Minister Fazekas. The domestic per capita consumption of fish has increased to around six kilograms over the past 10 years.
(Photo source: Pixabay)
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