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Gov’t rejects opposition proposal to lower vehicle fuel tax

The government rejected a proposal by the opposition to reduce the excise tax on vehicle fuel to cushion the impact of higher prices.

The government believes the problem of higher vehicle fuel prices cannot be solved with tax policy, National Economy Ministry state secretary András Kármán told a meeting of Parliament's Audit and Budget Committee.

The proposed reduction would cut revenue from the tax by HUF 50 – 60 billion, he said. EU finance ministers confirmed an earlier agreement on not allowing vehicle fuel prices to fall to levels that would draw road haulage companies from other member states across their borders to tank up.

Vehicle fuel prices in Hungary are at record highs at present.