The National Economy Ministry examines the possibility of VAT reduction on food products

The Ministry of National Economy Ministry examines the possibility of VAT reduction on basic food items, but no decision was born yet – InfoRádió writes. According to the recent study of the Agricultural Economics Research Institute, the reviewing of the current system and VAT rate is necessary.

According to the study, a discount 12 percent VAT rate for basic foods can be a real alternative to the current 27, as it may improve the food industry's competitiveness, and would reduce the import pressure and VAT frauds as well. It would also reduce consumer prices, which would have a positive impact on inflation, and both consumption and employment would be improve substantially. (Panulin Ildikó, inforadio.hu)