The VAT on pig carcass will be reduced to five percent

The proposal causes debates among the domestic players of the meat sector. It proposes to decrease the VAT on pig carcass from 2016 to 5 percent from the current VAT rate of 27 percent, but the move would not cover other meat products – the agrarszektor.hu wrote.

While the pork market participants responded positively to the announcement of Varga Mihály Minister of National Economy, according to the poultry sector this step may be discriminatory. The pork and poultry meat products are substitutes to each other. Some argue that the EU may raise legal challenges if the drastic VAT reduction would apply only to pig meat. (agrarszektor.hu)