Brussels provides backing for Spar

It was announced on Thursday that the EU Commission is initiating infringement proceedings against Hungary at the instigation of the Spar chain. The system of special taxes violates the freedom of establishment and the extremely progressive, turnover-based tax rates would put large foreign companies in the retail sector at a severe disadvantage compared to domestic chains organised in a franchise system. Spar had complained to the EU Commission because it had to pay 4.5% for this special tax, while its domestic competitors got away with 0-1%.

The Ministry of Economic Affairs reacted with anger to the message from Brussels: ‘With Brussels on its side, Spar has unleashed another political attack against Hungary and our families. This is an objection to a measure that the ECJ already ruled in 2020 to be in line with EU standards.’ At the time, the Court recognised the sovereignty of the member states over their tax systems. Despite their progressive nature, the special taxes would not constitute discrimination.

Spar was also accused of ‘greed for profit’ at the same time. Meanwhile, the economic department sees itself as a fighter for low prices and will not be shaken in this sense by anything. This is not the first time that Austrians have been told to vacate the Hungarian market if they do not want to conform to local law and serve the interests of consumers.