Bakers Call For Lower VAT
- 21 Apr 2016 9:00 AM
The Bakers Association is lobbying for the extension of VAT cuts to bread products, after the government announced plans to lower the consumption tax on milk, eggs and poultry to 5% from 27% in 2017. Bread is the most basic food, and lower taxes would not only curb tax evasion, but lead to higher production and more jobs, the association argued.
The government dismissed the idea of extending VAT cuts to bread at its last cabinet meeting, due to the vast number and varieties of products on the market, Prime Minister’s Office leader János Lázár said last week.
Fruit and vegetable producers have also called for lower taxes, arguing that this would not only bring prices down, but would help to combat buoyant tax evasion, which could be as much as 50% of the legal sales generated by the sector.
Source: Hungary Around the Clock
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