According to USDA'S Global Agriculture Information Network (GAIN), the Hungarian cabinet decided on November 8 to reduce the VAT on live hogs and slaughtered pigs from 27% to 5%.
An amendment motion to the tax bills has been submitted to Parliament for a vote, followed by publication in the official gazette. Implementation is expected January 1.
As a result of the reduced VAT, legitimate meat processors will no longer have to compete with tax-avoiding competitors who buy meat illegally, and farmers will be less likely to sell their products on the black market. The budget impact is estimated at Ft 10 billion (about $45 million). Hungary’s VAT rate is among the highest in the world.
Thursday 14 November 2013/GAIN-USDA/ United States.