Official: Govʼt to ensure VAT reduction on pork passed on to consumers

EU

The Hungarian government has expressed its commitment to “do everything in its power” to see that the planned reduction in VAT for processed pork meat be passed on to consumers, deputy state secretary Zoltán Pankucsi said in an interview with state-owned news channel M1 on Saturday.

Pankucsi said that the government is negotiating with commercial companies to achieve the aforementioned goal.

Hungaryʼs government has proposed lowering the VAT rate on unprocessed pork from 27% to 5%, saving consumers an annual HUF 25 bln.

Hungaryʼs Poultry Products Council earlier called for equal treatment in a statement, as the rate for poultry is planned to remain at 27% despite the planned VAT reduction on pork. The council said the measure will put poultry farmers at a disadvantage and make competition difficult.

The council noted that the average Hungarian consumes 32 kg of poultry and 28 kg of pork a year. Hungarian commercial channel RTL Klub noted that according to data published by the Central Statistics Office (KSH) for the period between 2012-2014, Hungarians processed more poultry than pork meat. When interviewed by RTL Klub, Fidesz Caucus Leader Antal Rogán said that the government decided to cut taxes on processed pork because that is what Hungarians consume the most.

At a weekly press briefing last week, state secretary András Giró-Szász said the Hungarian government decided to lower the VAT on pork as Hungarian households spend more on pork than on poultry, and because it aimed to provide a disincentive for tax evasion in the sector, Hungarian news agency MTI reported.

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