Budapest, January 11 (MTI) – The government’s tax and farm policies are putting downward price pressure on basic foods and encouraging people to buy more Hungarian products, the farm minister said on Wednesday.

VAT is being reduced on more and more products each year, with fresh milk, poultry and eggs added to the list of basic foods bracketed in the 5 percent VAT this year, Sándor Fazekas told public television.

Retail chains have already incorporated the change into their prices and further VAT reductions are planned, affecting bread, groceries and fish, he added.

The VAT reduction introduced this year represents annual savings of 35,000-40,000 forints for an average family, and it is also expected to boost consumption and whiten the economy, Fazekas said.

Source: MTI

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