Whitening the milk market

A couple of weeks ago a new data providing regulation entered into force, the goal of which is to whiten the milk production and distribution sector. It has been a problem for years that various foods are sourced illegally – without paying a VAT – and sold cheaper than the normal price. This type of fraud is especially popular in countries where the VAT is high and Hungary, with its 27-percent VAT rate is a perfect example of this.

With the new regulation, the goal is to extend the circle of those in the milk sector who are obliged to provide data to the authorities, because experience is that control measures are more efficient if the latest data is available on sourcing, transporting and selling milk.

According to the Milk Interbranch Organisation and Dairy Board, from now on those working in the sector must report to the authorities monthly, contributing to the creation of a milk sector database that can be used for inspections by the authorities. Estimation is that the value of milk and dairy products imported illegally is around HUF 80 billion.