During a visit to Katowice on Saturday, Peter Magyar saw first hand that while the Polish minimum wage was 50 percent higher than the Hungarian one, food prices were 20 percent lower, on average, than in Hungary, the Tisza Party said in a statement.

Magyar said that while minimum wages in all neighbouring countries were higher than in Hungary, the price of basic foods was lower, according to the statement.

As a result of the Orban government's "failed economic policy decisions", Hungary has set a European record in food price inflation, reaching 62 percent in three years, he added.

Magyar said that Orban had introduced several taxes since 2010 that significantly increased food prices.

Hungary is currently a European champion in terms of taxes on food, with the 27 percent VAT rate boosted by a public health product fee and a 4.5 percent extra profit tax, he said.

Additionally, since last year, manufacturers are affected by an extended producer responsibility (EPR) fee that is among the highest in Europe, he added.

At the same time, profits are low, developments have been neglected, and there are problems with efficiency and competitiveness in the food industry, he said.

"Huge" taxes and food inflation have significantly set back consumption, and consequently profits in the food industry, Magyar said. This makes development and the progress of Hungary's food industry impossible, he added.

From 2026, the Tisza Party would reduce the VAT on fruits and vegetables, and gradually on all healthy food products, to 5 percent, he said.

It would also significantly reduce other taxes on food, to boost consumption and the competitiveness of Hungary's food industry, he added.

Magyar said consumer protection would also be strengthened in order to ensure that retailers pass on the price reductions expected from tax cuts to consumers.

Source: 
MTI - The Hungarian News Agency, founded in 1881.

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