EU Is Against Hungary’s Tax-Free Status Of Home-Made Pálinka
- 15 Apr 2014 9:00 AM
The European Union has decided that the distilling of pálinka shall be subject to taxation even under the quantity of 50 litres per year. Following the decision, the Government will initiate consultations with the European Commission with the aim of ensuring that the tradition of distilling pálinka lives on in Hungary in accordance with the EU regulatory framework.
Brussels launched an infringement procedure against Hungary in 2011, as the Orbán Government – mainly to preserve a national tradition -- had abolished the subcontract distillation spirits tax for home-made pálinka in 2010.
Distilling pálinka has been part of Hungarian cultural heritage which is rooted in historic traditions, therefore Hungary – like other EU member states such as Austria, Germany, Slovenia or Portugal – is insisting on defending and upholding its own tradition.
Since 2010, local farmers have the right to decide how to process fruits grown in their garden. In the countryside pálinka is distilled in order to make use of fruits that could not be consumed or cooked fresh.
The Government is committed to upholding the living tradition of home-made pálinka.
Source: Ministry for National Economy
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