ECJ Rules Against Tax-Free Pálinka Distillation In Hungary

  • 11 Apr 2014 9:00 AM
ECJ Rules Against Tax-Free Pálinka Distillation In Hungary
Rural Development Minister Sándor Fazekas reacted angrily yesterday after the European Court of Justice (ECJ) ruled against the Hungarian regulation that exempts distillers from paying taxes on the first 50 litres of pálinka (fruit brandy) produced annually.

An EU directive allows only a 50% reduction on the normal excise tax for such distillates.

The court’s ruling is “another shocking provocation by the Brussels bureaucrats”, Fazekas declared.

“This is not the first time that the EU has put pressure on us and arrogated rights without any basis. Pálinka is a Hungaricum and the government will find a legal solution to protect the traditions of distilling,” he said.

The Economy Ministry responded that the government is committed to protecting home distillery traditions, as a part of Hungary’s cultural heritage.

Source: Hungary Around the Clock

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