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Report: Government decides to lower VAT on raw milk

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The Hungarian government decided to lower the VAT rate of raw milk from the current 27% to 5% as of next year, Hungarian daily Magyar Idők reported on Saturday. 

According to the paper, only some technical details need to be clarified before the final decision is made. The paper noted that Hungary’s small dairy farmers can only sell raw milk at a HUF 50 per liter cost, which does not even cover their production costs. 

Dairy farmers recently held two demonstrations voicing their discontent about the low buying price of milk and cheap milk imports, according to reports.

On March 2, the Hungarian government issued a resolution on measures to support the countryʼs “troubled” dairy industry, and under this resolution, Hungary’s Minister of Agriculture was mandated to establish a broad strategy for the industry.

Hungaryʼs Cabinet Chief János Lázár on March 18 said that the Hungarian government was working on a detailed program to help the country’s dairy industry, on the pretext that if the Hungarian government does not help, milk production in the country could come to a halt.

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