The Ministry of Rural Development to prepare proposals to reduce food VAT

The Ministry of Rural Development prepares new government proposals in order to reduce the VAT of food products in three versions.

According to the informations of agromonitor.hu; the ministry insists that the VAT key should be reduced to 5 percent from today's 25 and 18 percent VAT rates. There ministry has three versions of the proposals as the ministry reported. A 240 billion HUF loss of revenue would, hit the annual budget if the 5 percent VAT rate would come into force at all basic foods – calculates the Ministry.