New Rules For Alcohol Excise Tax In Hungary

  • 7 Jan 2015 8:00 AM
New Rules For Alcohol Excise Tax In Hungary
The Prime Minister’s Office has proposed to reverse all new rules determining the amount of an excise tax bank guarantee paid by alcohol wholesalers after a series of proposals made on the subject. Gergely Gulyás, the ruling Fidesz party’s head of parliament’s legislative committee, said that the excise tax bank guarantee paid by wholesalers on beer, wine, sparkling wine and intermediate alcoholic beverages would rise from 22 million forints (EUR 69,000) to 150 million following passage of the tax law approved last November.

Several weeks later, lawmakers voted to amend the 2015 budget in such a way as to ensure that the amount of the guarantee would be determined progressively by net revenue bands in order to aid small and mediumsized wholesalers.

However this progressive change was slated only to come into effect on Jan. 1, 2016, whereas the raised amount already applied as of Jan. 1, 2015.

Gulyás said that the legislative committee bore responsibility for “mistakes” made in connection with the excise guarantee rules. In order to remedy this, a proposal for amending the law was tabled to bring forward the deadline for enforcement of the bands system to March 1.

In response to opposition criticism, Gulyás also said companies affected would not have to pay the raised excise guarantee in the interim period before the amended law with the more favourable bands system came into effect.

The Prime Minister’s Office, however, said in a statement that it did not agree with any of the proposed changes on the excise tax guarantee and instead would submit an amendment proposal to restore the amount of the guarantee to its Jan. 1, 2014 level of 22 million forints regardless of revenue.

Gulyás said he would welcome the reversal of the changes if they created a better situation for alcohol vendors. The opposition Socialists earlier said that “corruption-related infighting” for control over the market of alcohol wholesalers “was going on within ruling Fidesz”.

The opposition Democratic Coalition (DK) said that the “oligarch-friendly mafia government”, by “bleeding dry” 95% of drinks wholesalers, would contribute to job losses while lining the pockets of their own mates.

Source www.hungarymatters.hu

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