Opposition party wants to significantly lower VAT on basic foods in Hungary
The opposition LMP has re-submitted an amendment proposal to the budget bill to reduce VAT on basic food products to 5 percent, the party’s deputy group leader said on Saturday.
Antal Csárdi told a press conference that the price of basic foods had increased much faster than average inflation in recent years and decades.
“It is simply unacceptable that prices increase by double-digit ratios almost annually, while neither wages nor pensions can keep up with such an increase”, he added.
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Csárdi said it was unfair to apply the same 27 percent VAT to basic food products as to luxury goods.
Currently, there are already some food items that fall under the 5% VAT category including milk, eggs, and some types of meat products like pork, beef and fish.
1 Comment
In the UK most food is zero rated for VAT, yet the prices here in stores like Aldi, Lidl and Tesco are much the same. It seems that the big retailers absorb the VAT, so there is no guarantee at all that reducing VAT will have a noticeable difference in supermarket prices.,