EC Investigation Starts After Spar Claims Special Retail Tax in Hungary Discriminates Against Foreign Companies
- 8 Apr 2024 5:49 AM
- Hungary Matters
The European Commission is conducting an investigation into the Hungarian retail tax after the Austrian government and retail chain Spar filed a complaint against it, the EU authority told Reuters.
They claim that the tax introduced in 2020 discriminates against foreign companies and violates EU law, as the levy amounts to 4.5% of revenue, which forces companies to operate at a loss.
In contrast, Hungarian-owned retail chains pay only 0-1% tax on their revenues, as they operate as franchise networks.
The EC has already strongly criticised the retail tax in its 2023 country report and country-specific recommendations, calling it discriminatory.
EU authorities are also investigating the mandatory discount campaigns imposed on food products, as Spar challenged this regulation at the European Court of Justice last autumn.
MTI Photo
*********************************
You're very welcome to comment, discuss and enjoy more stories, via our Facebook page:
Facebook.com/XpatLoopNews + via XpatLoop’s groups: Budapest Expats / Expats Hungary
You can subscribe to our newsletter here:
XpatLoop.com/Newsletters
Do you want your business to reach tens of thousands of potential high-value expat customers?
Then just contact us here!
XpatLoop Media Partner
LATEST NEWS IN business