Hungary will reduce taxes to combat fraud in the pork market

The Hungarian government will reduce taxes on live pigs and pig carcasses in the fight against fraud in this sector.

Hungarian Cabinet decided to reduce VAT on live pigs and pig carcasses from 27 percent to 5 percent .

amendment to the law on taxes was presented to Parliament for a vote. Implementation of the amendment is scheduled for January 1 .

By reducing VAT legitimate meat processors will no longer compete with unscrupulous competitors who buy meat and illegally evade taxes , having thus the price advantage . Farmers also will no longer sell their products on the black market .

budget impact is estimated at approximately $ 45 million . VAT rate in Hungary is one of the highest in the world .