During a visit to Katowice on Saturday, Péter Magyar saw first hand that while the Polish minimum wage was 50% higher than the Hungarian one, food prices were 20% lower, on average, than in Hungary, the Tisza Party said in a statement.
Magyar said that while minimum wages in all neighbouring countries were higher than in Hungary, the price of basic foods was lower. As a result of the Orbán government’s “failed economic policy decisions”, Hungary has set a European record in food price inflation, reaching 62% in three years, he added.
Magyar also said that Orbán had introduced several taxes since 2010 that significantly increased food prices. Hungary is currently a European champion in terms of taxes on food, with the 27% VAT rate boosted by a public health product fee and a 4.5% extra profit tax, he said.
Additionally, since last year, manufacturers are affected by an extended producer responsibility (EPR) fee that is among the highest in Europe, he added. At the same time, profits are low, developments have been neglected, and there are problems with efficiency and competitiveness in the food industry, he said.
“Huge” taxes and food inflation have significantly set back consumption, and consequently profits in the food industry, Magyar said. This makes development and the progress of Hungary’s food industry impossible, he added.
From 2026, the Tisza Party would reduce the VAT on fruits and vegetables, and gradually on all healthy food products, to 5%, he said. It would also significantly reduce other taxes on food, to boost consumption and the competitiveness of Hungary’s food industry, he added.
Magyar noted that consumer protection would also be strengthened in order to ensure that retailers pass on the price reductions expected from tax cuts to consumers.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
