The Pálinka Knight Order would offset neta’s traffic-reducing effects with VAT cuts

Last year, the sales of pálinka fell by about 60 percent as a result of the introduction of the public health product tax (neta), and the Hungarian Pálinka Knight Order, after obtaining trade union support, would urge the Ministry of Finance (PM) to decrease the VAT on the product from 27 to 5 percent.

Barabás Attila, Grand Master of the Hungarian Pálinka Order of Knights, who was also the CEO of teh Győr Liqueur Factory (Győri Likőrgyár Zrt.), told MTI that 1.12 million liters of 50 percent fruit pálinka was sold in 2019, which means 2.24 million 0.5 liters of pálinka, while in 2018, 5.6 million half-liter bottles were sold. (MTI)