The opposition LMP is proposing the reduction of VAT to 5 percent on basic foodstuffs, such as fruit, vegetables, dairy products and bakery.
Party lawmaker Antal Csárdi told an online press conference that a reduction is needed because many Hungarians cannot afford to buy increasingly dear food due to its high VAT content. The party is proposing the reduction of VAT on food for the third time, he added.
Currently, restaurant bills carry only 5 percent VAT but the retail price of vegetables and fruit from shops include 27 percent VAT.
Further price increases affecting food can only be avoided by reducing the VAT, he said, and called on the government to support the party’s proposal.
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He added that hundreds of thousands have lost their jobs as a result of the novel coronavirus epidemic and the proposal could also help restore the economy.
Featured photo illustration by Tamás Sóki/MTI