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The planned 5% reduction of VAT on fuel from October 2005 is in line with EU regulations, as reductions on all goods will be implemented at the same time; however adaptation of the reductions related to fuel will be immediate, where others might be delayed. Sanctions from Brussels are not expected, however at a maximum, two discount VAT rates are permitted according to EU guidelines as well as the general VAT rate, and Hungarian VAT system will run with four different rates for 3 month as of October 2005. (A. Sz. NG 2)