European Commission Urges Hungary to Abolish Retail Tax for Equal Economic Treatment

• European Commission urges Hungary to abolish its retail tax regime
• Aim is to comply with the freedom of establishment
• Hungary should ensure equal treatment for economic operators of food and non-food products
• Infringement procedures initiated with two formal notices to Hungary
• Restrictions on price margins for non-Hungarian companies are a concern
• First procedure targets food product sales restrictions by retailers
• Second procedure targets non-food product sales restrictions by drugstores
• Article 49 TFEU requires equal treatment and non-discrimination of economic operators
• Hungary’s price margin limits force non-Hungarian retailers to sell at a loss
• Hungary has two months to respond to the Commission’s concerns
• Failure to respond may lead to the issuance of reasoned opinions by the Commission

Source: ec.europa.eu

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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