EU starts infringement procedure over Hungary’s home-made palinka

Brussels (MTI) – The European Commission has launched an infringement procedure against Hungary over excise tax rules on home-distilled palinka, the Commission announced on its website on Thursday.

Vanessa Mock, the Commission’s spokesperson for tax issues, queried by MTI, said that Hungary had failed to fully implement a ruling by the European Court of Justice passed last year, under which Hungary should have repealed a law allowing the distillation of an annual 50 litres of the eau de vie duty free if made at home or produced at a local distillery.

Following the European Court decision, Hungary changed its law to levy 50 percent of the regular excise tax on spirits on the palinka individuals produce at a distillery, but left home-distillery of 50 litres untaxed apart from a symbolic annual 1,000 forints paid to the local council.

Mock said that the commission expects Hungary to take further steps to comply with the court’s decision.

Photo: www.agroinform.com

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