What more do they want? Cereal and stuffed pasta tax in Hungary

The cereal and stuffed pasta tax is coming, experts expect a sharp rise in prices.

From 1 July, we will have to pay tax on muesli, cereals and even stuffed pasta with spinach. The public health product tax will be increased and extended to new goods under the excess profit tax regulation, writes Szabad Európa.

Changes in legislation

“Under the current change in legislation, all products containing added sugar will be taxable in the product areas concerned, i.e. any amount of added sugar will be subject to NETA (Public Health Product Tax – ed.),”

– Balázs Szük, senior manager at PwC Hungary Tax Advisory, told the news portal.

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He also said that what is new in the new regulation is that all combinations of sugar and sweeteners are covered. So those who would substitute sugar with sweeteners will also become taxable, writes 24.hu.

New products to be taxed

“This amendment brings a lot of products under the scope of the tax,” he added. The PwC expert also said that new items such as puffed cereal products have been added to the savoury snacks category.

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“Also a major change is the addition of two categories of taxable products. The new range of products includes snacks and pre-packaged sweet and savoury pasta,” he said.

According to Balázs Szük, the deli product group includes goods such as muesli and cereals, candied fruit, fruit pulp; and in the case of pasta, for example, filled pasta.