Gov’t to Take Action Against Foreign Retail Chains
- 14 Dec 2021 8:20 AM
- Hungary Around the Clock
The government is reportedly preparing to impose a tax increase on retail chains and to make it compulsory for them to hand over food that is due to expire within 48 hours to a newly founded state body, according to a working document obtained by Telex.
The argument behind the proposal is that it would lead to the elimination of food waste.
Baked goods will be exempt from the regulation.
The regulation would apply exclusively to foreign-owned retailers, as it would only affect those with annual revenue of Ft 100 billion. Hungarian chains operating in a franchise model would be exempt from the regulation, Telex writes.
The regulation would entail administrative obligations that would greatly increase costs.
The chains would be obliged to offer all perishable food to the state, more precisely to the soon-to-be-established Food Rescue Centre, which will be controlled by the food safety agency (Nébih).
Observers say that Aldi, Auchan, Lidl, Penny Market, Spar and Tesco would be hardest hit by the proposed regulations.
In addition, the upper band of the retail tax would rise from 2.5% to 2.7% (from February, according to a working paper).
Raising the retail tax would not only affect food retailers, because it could also affect IKEA, Media Markt and OBI, Telex writes.
XpatLoop Media Partner
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