Lower VAT on Romanian food could attract Hungarian shoppers

Budapest (MTI) – The planned introduction of 9 percent VAT on food in Romania is expected to attract Hungarian shoppers, Saturday’s daily Magyar Nemzet said.

The chief secretary of the national trade association OKSZ told the paper that many Hungarian families living near the border are likely to do their food shopping in Romania in the future. Gyorgy Vamos said the fluctuation of currency exchange rates and fuel costs will also influence cross-border shopping.

Once the VAT in Romania is reduced to one-third of the 27 percent levied on most products in Hungary, more Hungarian families will be inclined to shop on the other side of the border, this way contributing to the Romanian budget rather than the Hungarian, he said.

Vamos added, however, that the system of online cash registers and electronic road freight controls in force in Hungary would make it difficult for a black market in foodstuffs to emerge in Hungary.

The paper quoted Hungary’s economy minister Mihaly Varga as saying on Friday that the government was examining the possibility of reducing the VAT on certain products.

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