Food industry enterprises producing domestically have received relief in the NETA change

By: Trademagazin Date: 2023. 03. 07. 11:46

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

Thanks also to the indication of the National Chamber of Agrarian Economy (NAK), the disadvantage resulting from the accumulation of public health product tax payment obligations for food industry enterprises selling to the domestic market and producing products subject to NETA has been eliminated. As a result, Hungarian processors will not be at a competitive disadvantage in the domestic market against the imported products of foreign companies.

The chamber, together with other professional organizations in the food industry, recommended to the Government in the fall of 2022 and several times thereafter that, in addition to product production for export markets, the accumulation of NETA payment obligations should also cease in the case of products sold on the domestic market. In the case of NETA-obligated products with complex ingredients – used as raw materials – there was a cumulative NETA burden in the case of certain pre-packaged foods, which represented a disadvantage for domestic enterprises producing for the domestic market compared to single-taxed import competitor products.

The government perceived the justification of this proposal and amended the tax legislation within a short period of time. It will also be published in the Magyar Közlöny on February 28, 2023 – 197/2022 on extra-profit taxes. (VI. 4.) Government decree on the amendment related to public health product tax – 62/2023. (II. 28.) Government decree, which brought a solution to the previous problem affecting the domestic market.