Tax Rise Likely to Lead to Illegally Produced Palinka

Budapest, November 21 (MTI) – Several producers of Hungary’s famous palinka fruit brandy reckon that the illegally produced version of the tipple and Ukrainian vodka will be a big hit next year now that parliament has passed new rules on home brews.

In 2010 the government brought in a law allowing small producers making up to 50 litres of the stuff to do so tax-free. The European Union raised objections and now the rules are being changed again.

One fear is that next year brewers will earn a mere fifth of what they can make this year, and it is doubtful that the 500 or so producers will be viable businesses, the daily Magyar Nemzet said on Friday.

Now people are scrambling to make as much of the alcohol as possible this year, a brewer from Szabolcs in eastern Hungary told the paper. The news spread quickly that next year that more excise tax will have to be paid on a smaller amount.

A tax office (NAV) spokesperson told the paper that one of the most pressing tasks this year is to inspect players on the palinka market as well as, for example, carrying out x-ray checks on train wagons and vans crossing the border from Ukraine.

Photo: https://www.facebook.com/palinkaofficial

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