Why is Tokaj aszú cheaper in Switzerland than in Hungary?

Differences in prices and their reasons

The reasons for price differences are diverse, but they can also be traced back to simple factors. One of the most important factors is the different VAT: Hungary’s VAT of 27% is the highest in Europe, while it is only 8.1% in Switzerland. In addition, the various taxes imposed on Hungarian retail trade, such as the special retail tax, as well as the EPR fees and the excise tax rate, also contribute to higher prices. While in Switzerland aszú is a premium product, but “just one wine among many”, in Hungary it is considered a luxury drink, which further increases the price.

The international presence of Hungarian wine

Hungarian wineries, including Tokaj wines, have won recognition at international competitions, but their presence on the wider world market is limited. According to Lajos Braunmüller, the editor-in-chief of Agrársektor, Tokaj aszú has achieved outstanding success globally, especially through the Royal Tokaj winery, but other Hungarian wineries cannot produce in such a volume as to have a serious impact on the international market. Despite the excellent quality, Hungarian wines – with the exception of Tokaj Aszút – find it difficult to reach the wider strata of the world’s wine consumers.

Wineries such as Jammertal, Szepsy, St. Andrea, or the smaller Losonc winery are among the successful actors of the Hungarian wine industry, but they too cannot provide a significant export volume. Success in international markets requires a larger number of bottles and expensive and long-term marketing campaigns.