Socialists call for further VAT cuts on basic foodstuffs

Budapest, January 5 (MTI) – The Socialist Party on Tuesday called for further VAT reductions on basic foodstuffs after the VAT rate on unprocessed pork was reduced to 5 percent from 27 percent as of January 1.

Deputy Socialist leader Zoltan Gogos told a press conference that after failing to reduce food prices earlier, the government’s 22 percentage point VAT cut on pork could truly bring down its price.

Gogos said his party wants the government to also reduce the VAT on poultry products, milk, cheese, bread, eggs, fish as well as vegetables and fruits grown in Europe.

He said the 100 billion forint (EUR 317.1m) tax revenue loss the budget would suffer as a result of the proposed VAT cuts would be offset by the decline in VAT fraud losses.

Source: http://mtva.hu/hu/hungary-matters