Report: 90% of sugar burdened with tax fraud

Pharma

Some 80% to 90% of the sugar sold in Hungary is distributed while avoiding the payment of value added taxes, Magyar Cukor Zrt deputy CEO László Hajós informed local political news daily Magyar Nemzet this weekend.

Hajós noted that although there were some HUF 5 billion worth of exposed tax fraud cases connected to sugar distribution in the past two years, the actual extent of the phenomenon is far broader.

Hajós’s claims support allegations within the recently-begun scandal by former National Tax and Customs Authority (NAV) employee András Horváth. Horváth made similar assertions about sugar distribution, adding that the authorities are aware of the process and are ignoring it.

The sole sugar processor in Hungary, Magyar Cukor produced some 105,000 tons of product from sugar beets in 2013. Austria-based majority owners Agrana recently announced plans to create a logistics and distribution center for Magyar Cukor, with construction of a 60,000-ton silo to be completed this year.

– material by Gergő Rácz was used in this article

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