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

By: trademagazin Date: 2011. 03. 18. 15:25

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.