MTI asked the secretariat about possible VAT cuts after daily Népszabadság said the farm ministry could propose to the government reducing the VAT rate for poultry, pork, milk, bread, eggs and cooking oil to 5% from 25% and 18% at present..

A decision on the reduction of the VAT rate will depend on impact studies which, until now, show very different results, the secretariat said.

The government is closely watching food prices, helped by a workgroup at the Rural Development Ministry.