The VAT reduction should be reflected in consumer prices

The government is reducing the VAT of pork. It makes it possible that the consumer prices to be effectively reduced. It is important that traders should not swallow it – Pankucsi Zoltán, Deputy Minister of State of the Ministry of National Economy (NGM) told M1 news channel on Saturday.

Pankucsi Zoltán recalled that, according to the draft, with the 1 percentage point reduction of the personal income tax rate (from 16 to 15 percent) 120 billion HUF income will remain at the families, while the reduction of the VAT of pork products from 27 to 5 percent will have a roughly 25 billion HUF effect. (MTI)