EC to launch infringement procedure against Hungary over excise duty on spirits

EU

The European Commission (EC) will launch an infringement procedure against Hungary because of excise duty regulations on spirits, an EC source, who did not wish to be identified, told journalists on Thursday. The source said that the Commission took the view that the fact that Hungary levied two different excise duty rate on spirits is in breach of EU law. Hungary uses two excise duty rates, depending on the acohol content of the product. EU legislation sets, however, a minimum for the rate but requires member states to use only one rate. The Commission had already refered Hungary to the European Court of Justice in February this year for exempting “palinka,” the national eau de vie, from excise tax under certain conditions. The Hungarian government said at the time that it has no plans to tighten regulations of home distilling, and is prepared to defend its stand before the European Court. Legislation in force since the autumn of 2010 allows Hungarian households to distill for personal consumption the equivalent of 50 liters of 86%-alcohol palinka a year tax-free. An EU directive that allows, however, only a 50% reduction on the normal excise rate for such distillates.

ADVERTISEMENT

Varga puts 2021 GDP growth at 7-7.5% Analysis

Varga puts 2021 GDP growth at 7-7.5%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.