Even „basic food products” may cost more from July

The new 18 percent VAT-rate to be introduced in July is not going to bring about significant changes when it comes to the actual prices of products: bread and milk may cost 2-3 HUF less, but certain products may cost more.

 Since the new Bajnai-package is going to make most products more expensive, the concept of an 18 percent VAT had been introduced to save those with lower income. Basic food products would belong to this VAT-group, like milk and bread. The change, according to recent calculations would not be significant, meaning 3-4 HUF only. However, other services associated with food production like packaging, delivery and gas would belong to the higher, 25 percent VAT-group, thus would make bread and milk significanly more expensive starting from July.