VAT rate cuts to save Hungarians EUR 190.5m next year, says farm minister

Budapest, April 20 (MTI) – Planned reductions in the VAT rates for milk, eggs, poultry and catering will save Hungarians about 59 billion forints (EUR 190.5m) next year, farm minister Sándor Fazekas said on Wednesday.

Savings will add up to about 35,000-40,000 forints per family, Fazekas told a press conference.

The reduction in the VAT rates for milk, eggs and poultry from 27 percent to 5 percent will reduce prices for the products by more than 10 percent, similar to a drop in the price of pork after a VAT rate cut, he added.

The VAT rate for catering is set to fall to 18 percent next year.

The VAT cuts will boost consumption and put a squeeze on the shadow economy, Fazekas said.

Source: http://mtva.hu/hu/hungary-matters