Hungarian wheat growers seek VAT reductions



Hungary’s association of wheat farmers and traders recommend the Hungarian government cut the value-added tax on wheat products, for both human and animal consumption, from 27% to 5%, Hungarian news agency MTI reported yesterday. The government has already said it would cut VAT on other food products in its 2017 budget.

The reduction of the VAT rate on flour and wheat would generate net revenue to the budget, the association said in a letter sent to Hungary’s National Economy Minister Mihály Varga, according to MTI. 

The association added that the “whitening” of the flour market would generate more than HUF 3 billion VAT revenue, which would replace the HUF 2 bln revenue lost due to the lowering of the VAT rate, MTI reported.

After the Hungarian government lowered the VAT rate on pork earlier this year, other sectors started lobbying for similar measures. As part of next yearʼs budget, the government announced that it would reduce the VAT rate for milk, eggs and poultry from 27% to 5%, and cut the rate for catering and internet services to 18%.


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