Why are apples cheaper in Poland? – Prices, VAT and agricultural strategy in the background
A model Polish economy and a conscious tax policy are behind the surprisingly low Polish food prices for Hungarian consumers – writes Pénzcentrum.
A Hungarian TikTok video has once again highlighted what an increasing number of consumers visiting abroad are experiencing: basic food products are much cheaper in Poland than in Hungary. The differences are not only due to store prices, but also to much deeper economic, agricultural policy and tax factors – points out Lajos Braunmüller, editor-in-chief of Agrárszéktor.
Half-price apples and the hidden reasons
According to the creator of the video, the price of apples per kilo in Poland is only around 370–380 forints, compared to the 750–1,300 forints in Hungary. The reason for this is mainly the lower VAT rate (5% for vegetables and fruits) and the 8% VAT on agricultural production inputs – such as pesticides and fertilizers. In contrast, in Hungary, most food products fall under the 27% VAT rate.
Polish producers thus already have a competitive advantage at the input level: they have cheaper access to the materials necessary for production and have to calculate with a lower tax burden. This also affects the price of the final product.
Modernized agriculture, export-ready production
Poland has undergone spectacular agricultural modernization in the past decade, with the involvement of significant EU funds. Intensive, irrigated, modern apple orchards have become decisive at the national level. Producers work with advanced plant protection and nutrient supply technologies, which allows them to ensure stable, large-volume and high-quality crops – all at export-ready prices.
In contrast, Hungarian apple production is still extremely heterogeneous: there are modernized, efficient plants, but the sector as a whole is not characterized by a uniform level of development. Due to the fragmented structure and the increase in input prices, domestic producers often lose out in price competition.
Climate, market and VAT – three advantages on Poland’s side
Polish apple production is also helped by climate change: there are more hours of sunshine, more favorable heat sums, which improve yields and fruit quality. The country is one of the largest European apple exporters, selling a significant part of its production abroad – often in Hungary as well.
The low VAT not only relieves producers, but also consumers. While the 27% rate in Hungary strongly impairs competitiveness, Poland has curbed inflation with targeted tax cuts, and this is also felt in store prices.
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