Hungary to introduce VAT refund cards for pensioners on essential goods
Pensioners will be provided cards which they can use in shops to reclaim the VAT on certain products, the prime minister said, adding that seniors could expect a refund of HUF 10,000-15,000 (EUR 25-37) a month.
Viktor Orbán said on Facebook on Wednesday that earlier reductions of the VAT on a number of products “mostly benefitted large store chains rather than those intended”.
“Therefore this time the government will not cut the VAT but refund it for basic food products with a higher than 5 percent VAT,” Orbán said. “This mechanism will be available to pensioners and for them the simpler the process the more practicable,” he added.
Pensioners will present their card to the cashier, “the card will be beeped and the purchase validated by the shop clerk, and [pensioners] will automatically receive the refund due to them”, Orbán said.
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Viktor Orbán said on Facebook on Wednesday that earlier reductions of the VAT on a number of products “mostly benefitted large store chains rather than those intended”.
The Viktator is unable to make sure that the reduction in VAT leads to the reduction in the product price by the same percetage? too hard for him and his corrupt administration?
“Pensioners will present their card to the cashier, “the card will be beeped and the purchase validated by the shop clerk, and [pensioners] will automatically receive the refund due to them”, Orbán said.”
Ehhh. Any clue as to how difficult it is to set up (reading, calculation, logging), as well as get it to mesh with the bookkeeping systems?
This Politician solution is potentially as expensive as the “benefit”.