BRUSSELS: The European Commission has closed an infringement procedure against Hungary related to excise tax rules for palinka, the Hungarian eau de vie, but launched another one on exemptions for pálinka and herbal spirits from a product tax, the EC’s press service said on Thursday.
The EC closed the former infringement procedure after it found the new excise tax law, in force from the start of 2016, to be in line with European Union rules. The EC launched the second procedure because it deems the tax system’s preferential treatment of local products violates EU directives.
In 2015, Hungary introduced a health tax of 20-900 forints per litre on spirits, depending on alcohol content. Pálinka and spirits containing at least seven kinds of medicinal herbs are exempt from the tax.
