BUDAPEST: Hungary’s Government has hit back at the launch of a European Commission (EC) investigation into its tobacco and supermarket taxes.
Following industry complaints, the EC opened two separate in-depth investigations to further examine whether two recent Hungarian measures with steeply progressive rate structures are in line with EU state aid rules.
The first measure concerns a food chain inspection fee levied on many common foodstuffs, and the second concerns a tax on turnover from the production and trade of tobacco products. The Commission has issued an injunction, which prevents the collection of these taxes while the investigations are under way.
János Lázár, the Minister of the Prime Minister’s Office, has indicated that the Government will not recognize the Commission’s action. In comments to journalists, and reported by The Financial Times, he said companies will be required to pay the controversial taxes, even if Hungary has to reintroduce them as a different measure.
