EC closes one infringement procedure against Hungary, launches another
The European Commission has closed an infringement procedure against Hungary related to excise tax rules for the national spirit pálinka, but launched another on exemptions for pálinka and herbal spirits from a product tax, the ECʼs press service said yesterday, according to Hungarian news agency MTI.
The EC closed the former infringement procedure after it found the new excise tax law, in force from the start of 2016, was in line with European Union rules. The EC launched the second procedure because it deemed the tax systemʼs preferential treatment of local products is in violation of EU directives.
In 2015, Hungary introduced a health tax of HUF 20-900 per liter on spirits, dependent on alcohol content. Pálinka and spirits containing at least seven kinds of medicinal herbs are exempt from the tax.
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