Will the price of draft beer decrease drastically in Hungary?
According to vg.hu, the VAT of several restaurant services is expected to fall to 5% next year, and beer manufacturers have asked the Minister of National Economy to expand the discount to draft beer. With the support of the Kraft Beer Association, an exemplary unity was formed in the industry.
The Kraft Beer Association has turned to Mihály Varga, the Minister for National Economy regarding the decrease of draft beer’s VAT. They ask him to support the decrease of the VAT of draft beer produced by Hungarian brewers from the 1st of January, 2018. The VAT of restaurant consumption was lowered to 18% this year, and it will be further decreased to 5% next year. Hungarian brewers aim to join this circle.
The Kraft Beer Association was formed this year to represent those small work breweries that use the most modern technologies and care about the good quality and positive reputation of craft beers. The members of the presidency come from Hoptop, Horizont, Mad Scientist and Monyo, while other members include Balkezes, Hedon, Rothbeer and the Uradalmi Beer Manufacture.
The main argument of Kraft is that their beer is put onto the market as draft beer in barrels. Based on their experience, small enterprises struggle to find professional work force and to train their barmen. This is why they should be put into a situation where they have enough capital for human resources and development. Moreover, these professional employees are taxpayers, and the trade generated by them would result in higher inland revenue.
“The VAT decrease of draft beer is a joined interest, it would increase the elbow-room of hosts and breweries, and the surplus could be spent on technology and product development” said Ádám Dudok, the manager of Sörműves Ltd. He added that the VAT decrease would also help small work breweries strengthen their export markets.
Attila Schillinger, the director of the Association of Hungarian Brewers confirmed that the majority of draft beer is produced in Hungary, and barrelled beer necessitates professionalism. The discounted VAT would facilitate wage increase, thus ensuring expertise and high standard. Moreover, the measure would also help the lack of work force in the HoReCa (hotel, restaurant, catering) market.