Minister: Hungarians to save HUF 59 bln on VAT rate cuts

Telco

Hungarian citizens are expected to save approximately HUF 59 billion on VAT rate cuts the Hungarian government is planning for 2017, Hungary’s Minister of Agriculture Sándor Fazekas said today, according to reports.

According to the minister, Hungarians could save a total of HUF 21 bln on milk, HUF 10.5 bln on eggs, HUF 19 bln on poultry and HUF 8.5 bln on catering, which means a family could save approximately HUF 35,000-40,000 annually. 

The minister added that planned VAT rate cuts for milk, eggs and poultry from 27% to 5% could reduce the price of consumer products by more than 10%, similar to the case of the VAT cut for pork.

The minister expects the planned VAT rate reductions to boost consumption in the country, as well as squeeze out the shadow economy, Hungarian news agency MTI reported.

The government also plans to reduce the VAT rate on internet services and on catering next year, both by 18%, the minister added.

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