Hungary’s New Government Weighs VAT Cut on Produce as Plant-Based Advocates Gain Ground

Hungary's new government is considering reducing the value-added tax on fruits and vegetables from 27% to 5%, with plans to possibly include legumes in the future. This tax measure follows the recent parliamentary election that brought the Tisza Party to power, opening the door for policy changes that plant-based advocates had been lobbying for. NÉGYOSZ, the Hungarian Association of Plant-Based Food Producers and Distributors, has been in talks with the Ministry of Agriculture to address issues facing the plant-based sector and propose solutions.

The Ministry of Agriculture has been engaged in discussions with NÉGYOSZ to address barriers to the sector's growth, such as subsidy imbalances and public catering rules. The association has been inspired by Denmark's Action Plan for Plant-Based Foods and hopes Hungary will follow a similar sustainable food strategy. Additionally, the new government is drafting a climate law that includes wording on food systems, with NÉGYOSZ working alongside civil society groups to ensure the legislation addresses these issues.