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Socialists propose reducing VAT on basic foodstuffs

A gap of more than ten percent exists between the pension increase and inflation, and VAT on basic foodstuffs should be reduced to zero, a Socialist politician said on Friday.

Official statistics show that the inflation rate based on the consumer basket of pensioners was 26.5 percent in December, Lajos Korozs, the party’s deputy leader, said at an event streamed on his Facebook page. Meanwhile, retirees are receiving a 15 percent pension increase, meaning that pensioners “will again be lending to the government for months”, he added.

More than 1.1 million pensioners live on monthly pensions of 80,000-160,000 forints (EUR 202-404), he said, calling on the government to reduce VAT on basic foodstuffs to zero percent and that on household energy to 5 percent.

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