Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 6/22/2012

Hungary - Excise tax exemption on fruit brandy 

June 22:   The European Commission (EC) requested that Hungary amends its law that grants an exemption from excise tax on pálinka (e.g., fruit bandy) under certain conditions.

According to an EC release (IP/12/674 21, June 2012), Hungary exempts "pálinka" from excise tax when produced by households or distilleries for personal use, up to a maximum of 50 litres a year.


Excise tax on alcohol is harmonised under EU Directive 92/83/EEC, which allows Hungary to grant a 50% reduction to the normal excise tax rate on "palinka" produced by distilleries, for personal use, up to 50 litres a year. The full exemption is not allowed by the EU law.


The EC’s request takes the form of a “reasoned opinion” (the second stage of an infringement procedure). If Hungary does not change its excise tax measures, the EC may refer the matter to the Court of Justice for the European Union.




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