Coffee, Beer may be Taxed in Hungary

Media reports indicate that Hungary's government is planning a special levy on coffee, alcopops and flavoured beers on top of a chips tax on salty and sweet products introduced last month.

Media reports indicate that Hungary's government is planning a special levy on coffee, alcopops and flavoured beers on top of a "chips tax" on salty and sweet products introduced last month.

The government wants an extra tax of 250 forints (0.86 euros, $1.10) per kilo of coffee, 100 forints per litre of alcopops and 35 forints per litre of flavoured beer, the website of the HVG weekly reported.

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The draft measure argues that alcopops -- alcohol drinks that taste like soft drinks -- and flavoured beers "contain sugar and ... are attractive to young people and so introduce them to alcohol."

A month ago Prime Minister Viktor Orban's government launched a special "chips tax" on pre-packaged savory products, biscuits, fizzy and energy drinks aimed at changing eating habits and reducing obesity.

It is also set to bring in a much-needed 67 million euros ($90 million) into state coffers in 2011 and 100.7 million euros next year, according to budget numbers.

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Asked about the new tax on Friday, a spokesman said "the plan has not been on the agenda of the government."

Source-AFP

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