Tisza: Eating healthy = 5% VAT

‘Hungary has the highest taxes on food and the highest food prices, but at the same time the lowest minimum wage,’ reported the leader of the Tisza party from Katowice. Magyar summarised his personal experience in grocery shops by saying that prices in Poland are on average a fifth lower than in Hungary, while the Polish minimum wage is one and a half times higher than in Hungary. This formula – lower prices for basic foodstuffs with a higher minimum wage – also applies to all of Hungary’s EU neighbours. The opposition politician sees the cause in the misguided economic policy, which has led to record food inflation (62% in three years).

Since 2010, the Orbán government has introduced or raised numerous taxes, as a result of which food has also become more expensive. VAT (ÁFA) of 27% is the ‘European champion’, but there is also a ‘health’ product tax and, last but not least, the 4.5% excess profit tax for retailers. Hungary also usually sets particularly high margins for manufacturers’ liability fees, which are prescribed by the EU. At the same time, the domestic food industry suffers from a lack of efficiency and competitiveness.

As concrete solutions, the Tisza party wants to reduce the ÁFA for fresh fruit and vegetables and then gradually for all other healthy foods to 5% when power changes hands in 2026. Other burdens would be reduced in order to boost consumption and thus strengthen the industry. At the same time, the party wants to extend the powers of consumer protection so that retailers can actually pass on the tax and price advantages to customers.