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The struggle of more than ten years for the Pálinka War of Independence ended with a Hungarian victory, the European Union modified the relevant regulations, so that the brewing of pálinka beer can be tax-free again next year, András Tállai reported, Parliamentary Secretary of State of the Ministry of Finance.
According to the decision of the Orbán government, as of January 1, 2021, both private home cooking and salaried cooking can once again be tax-free. The freedom to make brandy has a long history, which is why the government fought for tax exemption, despite fighting for the lightest possible rules in 2016 with the introduction of the distillate tax slip. Data from the tax office show that even under current regulations, when you have to pay 700 guilders per liter of distillate, there is demand for homemade brandy. Currently, there are around 27,000 kitchen appliances in Hungarian homes, and between January 1 and October 8, 2020, home kitchens triggered 69,000 tax penalties for distillate, András Tállai explained.
Summer marked the end of the Pálinka War of Independence, when the EU’s decision-making body amended the Alcohol Directive, which allows Member States to exempt the distillation of up to a maximum of 50 liters of fruit spirits per year . The Orbán government has decided to apply the favorable rules as of January 1, 2021, that is, next year there will be no need for a distillate tax ticket or the payment of the related public charge, András Tállai said.
Starting next year, all fruit-producing Hungarian citizens can cook 86 liters of fruit distillate per household in a private kitchen duty free.
The individual from the brandy distillery cannot sell the distillate, but his family and guests can consume it – András Tállai explained the new rules. The distillation equipment must still be notified to the municipality, but before cooking it must also be notified to the National Tax and Customs Board, in exchange for which the authority issues a certificate of origin, which certifies the origin of the distillate and allows the participation in various brandy contests. City employees will continue to monitor compliance with home cooking standards.
By October 8, 2020, despite the coronavirus epidemic, the amount of brandy made for hire was significant, at 947,000 hectoliters. That is equivalent to almost 1,900,000 liters of 50 percent distillate, explained the secretary of state.
The Finance Ministry is expected to present proposals to the National Assembly next week to reduce the tax administration, one of the important elements of which is the production of tax-free brandy, as the new rules will bring not only financial savings but also simplification. significant next year.
The Secretary of State. Remember, currently a private brewer must request a distillate tax slip from the tax office prior to producing distillate. A liter of brandy can be prepared at home with a distillate ticket. Every year, at least three thousand five hundred guilders must be paid at the time of the first application, that is, at least five tax stamps must be purchased. Currently, salaried cooking is taxable, those wishing to use the fallen fruit as brandy must deduct a salary cooking tax of approximately 800 HUF per liter.
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