Poultry farmers criticize unfair tax cut

EU

Hungaryʼs Poultry Products Council called for equal treatment in a statement today following the Hungarian government’s approval of a reduction in VAT on unprocessed pork from 27% to 5%, while the rate for poultry remains at 27%, Hungarian news agency MTI reported.

The council said the measure will put poultry farmers at a disadvantageous position in the market, making competition difficult. The council noted that the average Hungarian consumes 32 kg of poultry and 28 kg of pork a year.

At a weekly press briefing today, state secretary András Giró-Szász said the Hungarian government decided to lower the VAT on pork as Hungarian households spend more on pork than on poultry, and because it aimed to provide a disincentive for tax evasion in the sector, Hungarian news agency MTI reported.

Hungarian commercial channel RTL Klub said yesterday that based on their own calculations, a Hungarian family will be able to save approximately HUF 16,000 annually due to the tax reduction. RTL Klub, however, noted that according to data published by the Central Statistics Office (KSH), in the period between 2012-2014 Hungarians processed more poultry than pork meat.

When interviewed by RTL Klub, Fidesz Caucus Leader Antal Rogán said that the government decided to cut taxes on processed pork because that is what Hungarians consume the most. 

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