ADVERTISEMENT

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. 

ADVERTISEMENT

Business, consumer confidence slip in May Analysis

Business, consumer confidence slip in May

Parl't elects Orbán prime minister Parliament

Parl't elects Orbán prime minister

New managing director at LG Electronics Hungary Appointments

New managing director at LG Electronics Hungary

Airport bus fare could rise to HUF 1,500 City

Airport bus fare could rise to HUF 1,500

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.