The EU does not like the Hungarian taxation of pálinka

The European Commission on Thursday called on Hungary to terminate the partial excise tax exemption of pálinka, ban the traditional hen cages as soon as possible and strongly requested to coordinate it’s national regulation on the environmental impact of projects to the EU rules.

Under the Hungarian regulation, the duty-free volume of pálinka used for personal usage is an annual 50 liters per household. The excise tax of alcoholic beverages is harmonized by EU legislation. Under the Directive, Hungary can only decrease the value of excise tax on pálinka  by 50 percent, until a volume of 50 liters. Hungary one and a half years ago adopted new rules. Since September 2010 anyone can cook 86 liters of 50 degrees fruit distillate at home free of tax. (by our colleague)