Wednesday, December 15, 2021

The Hungarian parliament has approved an increase in the taxation of large chains of foreign hypermarkets

 


 Hungary's parliament has approved an increase in taxation of the country's major hypermarket chains, most of which are foreign, which will also be forced to hand out food with an expiration date of up to 48 hours for social events for the needy, romania's Agerpress news agency reported, refers to media reports.

Under the new law on retail chains with an annual turnover of more than 273m euros, the special income tax will increase to 2.7%. It is currently 2.5%.

Although the law does not discriminate against domestic and foreign companies, in practice it will only affect large retail chains based abroad - such as Aldi, Auchan, Lidl, Penny Market, Spar or Tesco.

 The new law also stipulates that these retail chains will have to deliver expired food within the next 48 hours daily to special banks for those in need, except for those with a shelf life of less than two. days from the time of production, such as bakery products.

The legislation does not affect the three largest Hungarian retail chains, namely CBA, COOP and Real, they are franchises and have turnovers below the ceiling set by law.

 Viktor Orbán's government has been insisting for years that Hungary should support local hypermarket chains, but says the new law, which takes effect on January 1st, aims to reduce food waste and target people who need it. .

However, some Hungarian media outlets, such as the Telex news website, have argued that the obligation to hand over expired food may be unconstitutional, citing private ownership of these products.

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