Tax Cuts to Fight Fraud in Pork Market21 November 2013
HUNGARY - To fight fraud, the Hungarian government is cutting taxes on live and slaughtered hogs.
Cabinet slashes VAT on live hogs
The Hungarian cabinet decided on November 8 to reduce the VAT on live hogs and slaughtered pigs from 27 per cent to 5 per cent.
An amendment motion to the tax bills has been submitted to Parliament for a vote, followed by publication in the official gazette.
Implementation is expected by 1 January.
As a result of the reduced VAT, legitimate meat processors will no longer have to compete with tax-avoiding competitors who buy meat illegally, and farmers will be less likely to sell their products on the black market.
The budget impact is estimated at Ft 10 billion (about $45 million). Hungary’s VAT rate is among the highest in the world.
ThePigSite News Desk