AM: Tax and administrative burdens for farmers to be reduced from January 1

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It was written that the Minister highlighted on his social media page that from January 1, trailers of agricultural tractors will be exempt from vehicle tax, which means a significant relief for farmers performing transport tasks. Another important change is that from this year, forestry properties will belong to the same category as agricultural land, so municipalities can no longer impose settlement tax on them. In the case of agricultural land sales, the exemption from duty will remain even if the land has a statutory easement. The amendment resolves a previous difference in legal interpretation and creates a uniform framework for the taxation of forest and agricultural land – they indicated. They added: it serves to reduce market exposure and strengthen sales security that from this year, beef head meat and beef offal will also be subject to the five percent VAT rate, which previously applied only to half and quartered cattle.

According to the statement, the Minister also mentioned that producers affected by early spring frost damage and drought can benefit from a one-year loan moratorium if they have registered with the damage mitigation fund

The aim of the relief is to ensure that the financial situation of farmers affected by weather extremes remains stable and they can continue their farming activities. They drew attention to the fact that the year is also starting with new opportunities for the wine sector. A 50 percent excise tax discount has come into effect for small-scale sparkling wines, and winemakers can now also produce sparkling wine in tank form using their own grapes or wine. This strengthens the competitiveness of domestic wineries, encourages technological development, and contributes to strengthening key value chains, they highlighted. According to the statement, István Nagy emphasized that the common goal of the measures that have come into effect is to support farmers’ livelihoods and preserve the performance of Hungarian agriculture, which is the basis of the country’s food security. The government continues to use all means to ensure predictable conditions for this work, even amid the challenges. “Agricultural players can count on us, just as they have done so far,” the Minister of Agriculture said.

MTI