Orbán cabinet to push out foreign supermarket chains
The Hungarian government may pursue an openly protectionist policy that would threaten the large foreign supermarket chains. The government’s aim is to prevent food waste with this measure. According to the draft bill, foreign supermarket chains should give away food items with close expiration date to the state. In addition, the government would raise taxes on the stores involved.
Fight against food waste
Deputy Prime Minister Zsolt Semjén and Minister of Agriculture István Nagy submitted the proposal on the supervision of supermarket chains, writes 24.hu. The new proposal would take effect in February.
The retail sales taxes would also increase.
In addition, supermarket chains would be required to give away food items with a close expiration date to the state. Companies with a net turnover of HUF 100 billion a year must offer food items with a remained shelf life of no more than 48 hours to the state. The state established the Food Rescue Centre (ÉMK) Nonprofit Ltd. for this purpose.
Furthermore, the state would raise the retail sales tax from 2.5 pc to 2.7 pc.
The affected stores include Aldi, Auchan, Lidl, Penny Market, Spar and Tesco. The government aims to save food and curb food waste with these actions. According to statistics, Hungarians discard around 60-80 kilograms of food annually. This government’s measure could not only improve hunger rates but it would also result in other environmental benefits.
Is the proposal unconstitutional?
President János Áder had previously requested a constitutional review of the Waste Management Act. He argued that waste also has value and, therefore, cannot be discarded without consideration. Based on his view, products that have not yet expired certainly have value.
“It is mine, even if I cannot sell it, at least let me decide what to do with it,”
sellers may rightly think, according to telex.hu.
The retail sales tax increase would not only apply to supermarket chains but also to other outlets that sell industrial goods. However, the biggest issue would not be the rising tax rate, but the implementation of the product supply. The proposal would require stores to prepare a food rescue plan. The companies have to appoint a separate person in charge and follow a separate accounting process. The idea of how much a chain would discard in advance is unrealistic. After all, if they knew the exact demand, they would likely order less.
Many retail chains do not throw out food en masse, but, in collaboration with various organisations, they donated them to municipalities, animal shelters and people in need.
- Planet Budapest 2021 sustainability expo ended on Sunday
- Hungary’s industrial output dropped by an annual 3.4 pc
Source: 24.hu, telex.hu
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5 Comments
This is a “Loaded Pistol” attitude and approach – being undertaken by the present Government of Hungary.
The winners will be – that the LARGER players – will in probability – close or downsize there operations in Hungary.
This attitude by the present Government – is this – AGAIN – removing CHOICE – to residents – in shopping at Supermarkets – that COMFORTS them ???
FIND – a Middle and Balanced ground – position to the Government is my ADVICE.
Hungarian produce from our lands by our farmers – INTERFACED – balanced with the Foreign Supermarket Chains – the BIG players – find BALANCE should be the Governments agenda – that ENABLES – that CITIZENS have CHOICE.
Hungary – yes larger slice of the cake but DON”T – fire the pistol and “thin” the choice of citizens in this vital part of life practice – under Supermarket Shopping.
Now the chains will pass it to the consumer in the way of higher prices (like the current inflation is not enough).
Great job again Orbán!
If the foreign chains will not bribe us like they should-they will pay for it!
The Orbán dictatorship will get it’s bribes one way or the other!!!
This move WILL NOT help Hungarian consumers or emplyment at all. It will result in higher prices, loss of thousands of jobs and will make other international firms reconsider doing business in Hungary. Frankly I do not at all blame the international food chains for considering taking this matter to court at the European Union level if it comes to it.
This little stunt reaks of trying to help the Hungarian grocery firms like CBA and Coop the problem is these local chains do NOT provide the items and value for the money that the consumer now want. THIS SMELLS of cronyism. I do NOT patronise CBA and Coop because they do not carry the selection of products I want, the prices are high and the customer service sucks. Yes, I said it sucks. They will not order products they presently are not carrying and frankly could care less if you are satisfied or not.
Let Hungarian consumers shop where they want not force them to shop somewhere. Did Hungary not learn anything during the communist era? This move is a dumb move and it will not help Orbans friends firms thrive. If the local chains want to thrive stop acting like “It’s good enough for them” if it was good enough the international chains would not be thriving.
Comments by (3) three contributors – Excellent.
Stand over, dictate – our way or no way – Absolutely dismissing giving citizens Choice – and citizens still in numbers -Believe – we are not living under a Dictatorship run Style of Government.
What next but May 2022 is fast approaching and citizens have the power to right all the wrongs that are on-going in Hungary and restore a Fair System under Democracy.
This Government not just in Europe and Britain but Globally – does it not UNDERSTAND – situations that this one article alone centers on – they continue to Damage – the Brand Name – Hungary.
Linking a rule to reduce food waste (and to help the needy) with a drive to displace foreign supermarket chains is totally disingenuous. An artificial construct. I am no fan of this government but for once I have to support them in a measure that they have undertaken. As for the ‘get the foreign companies out’ crowd, name one useful Hungarian supermarket chain – you can’t! Plus, trying to force the German, French and Austrian (and UK – Tesco) chains out would be illegal under EU law and hugely unpopular among Hungarian people, as the government well knows.