25 percent VAT only helps black market

The Association of Food Manufacturers do not agree with the concept that only certain basic food products would belong to the middle-range, 18 percent VAT-category. The association has published an announment on Thursday claiming that the following items should also belong to the 18 percent VAT-category: fresh vegetables and fruits, most dairy products, bread, bakery-items, meat-products and poultry, eggs etc. The goverment so far has only agreed to list milk, dairy products and bread under this category. The association has emphasized in its announcement that Hungarian food industry is the area that is based on Hungarian ingredients in the first place, thus it should be supported, not destroyed. The globally rare 25 percent VAT would just   provide the blooming black market with further facilities to grow, the association says.