Will the price of fuel fall in Hungary? Major tax cuts demanded
Europe’s largest tax reduction program would be a cut in fuel taxes, the Mi Hazánk Movement stated on Saturday in a press release to MTI.
János Szajlai, vice president of the party’s energy cabinet, noted in the statement that while the government has been touting “Europe’s largest tax reduction program” for days, in many cases, these promises will only materialise years from now.
“In contrast, the Mi Hazánk Movement has been proposing a tax cut for years that could truly be Europe’s largest tax reduction program and would provide significant relief to Hungarian families. This would be a reduction in fuel taxes,” he added.
Szajlai explained that in Hungary, taxes account for half of fuel prices, with the excise tax unjustifiably higher than the EU’s required minimum. On top of this, the 27% VAT further increases prices. If the excise tax were lowered to the EU minimum, petrol and diesel could be HUF 20-22 cheaper per liter.
Reducing the record-high VAT to the EU average of 20% would further lower fuel prices by at least HUF 40 per liter. Additionally, the EKR fee embedded in the price structure adds another HUF 8 in extra costs.
Fuel prices impact every aspect of Hungarian families’ lives, meaning that a reduction of HUF 60-80 per liter could significantly ease household expenses, Szajlai emphasised. “The Mi Hazánk Movement demands that the government at least lower the unjustifiably high excise tax to the EU-mandated level and consider further tax cuts to reduce fuel prices!” the statement concluded.
Read also: