The tax exemption of the homemade pálinka is contrary to the EU law

It is not compatible with the EU law, that Hungary allowed to cook up to 50 liters of fruit distillate a year with the exemption from excise duties – the European Court of Justice said in its judgment on Thursday.

The European Commission has launched an infringement proceeding on the grounds that the EU law in case of pálinka only allows to use a different tax rate, which cannot be less than half of the standard rate. The judges considered that the Committee is right in this matter. (Konsiczky Zoltán, MTI)