Budapest (MTI) – Hungary could become a target for VAT fraudsters unless the government reduces VAT on food, the opposition Socialists said on Sunday.
The party’s steering board member Karoly Beke told a press conference that thousands of Hungarians living near the borders regularly shop abroad to avoid the 27 percent Hungarian VAT, which is the highest in Europe, and the Sunday shopping ban introduced in March. This will be even more common after June when Romania reduces VAT on food from 24 percent to 9 percent and Hungary will be the only central European country where VAT on food is over 20 percent.
He said the government should support the Socialist proposal to reduce VAT on food to 5 percent. This would reduce budget revenues by 120 billion forints (EUR 395.3m), he added.