According to the legal standpoint of the Hungarian Government, the food chain inspection fee and health contribution fee on tobacco products are not in breach of EU law, Minister for National Economy Mihály Varga told public news channel M1, commenting on the announcement of the European Commission that they will launch an inquiry into the issue and prohibit the application of progressive tax rates until the investigation is over.

The Minister said the suspension of the taxes will cut budget revenues by some HUF 35-40bn and the Government is to consult with the European Commission. As Mihály Varga added, measures that had undergone a similar procedure were eventually all “given a green light”.

He stressed he sees a fairly good chance for persuading the Commission that the Government acts in line of EU regulations and it only adopts laws that are harmonized with them.

(Ministry for National Economy)