Brussels, 14/05/2014 (Agence Europe) - The Scotch Whisky Association has welcomed the intervention by the European Commission and the European Court of Justice (ECJ) on taxation following its two formal complaints with the Commission. The ruling gives Scotch whisky and other imported drinks a more even playing field in Hungary.
The ECJ has ruled hat the tax exemption in Hungary for palinka, the country's traditional fruit spirit, is illegal. The Commission has sent Hungary a “reasoned opinion” requiring that it adjust its legislation applying two different excise rates for spirit drinks depending on their composition and production method. Hungary has two months to comply, failing which the Commission may take it to the ECJ. Nick Soper, Scotch Whisky Association's European affairs director, said: “The decision regarding tax treatment and excise rates in Hungary is welcome news for the Scotch Whisky industry and for free trade in the European Union. The European Court and the Commission have condemned the protectionist tax discrimination in Hungary and the damage it could do to fair competition, a basic premise of the Single Market.” (EL)