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26th February, 2019

Few pay tax on pálinka production

Despite the symbolic Ft 700 per litre tax on home-distilled pálinka, the majority of distilling equipment owners are evading tax, Magyar Nemzet writes, citing the Pálinka Council.

Of the 23,662 registered units of fruit brandy distilling equipment, figures from the tax office NAV show that only 6,918 were reported to be in use last year, which is highly unrealistic, the Pálinka Council said.

This places distillers who pay taxes at a disadvantage, said CEO István Birkás of Birkás Pálinka.

Observers say many home distillers also produce more than the maximum permitted 50 litres annually and sell it illegally. This unfair practice is impossible to eliminate due to the lack of proper control, Birkás notes.

Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).

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