Hungary reduces firewood VAT to 5% and scraps prescription‑drug VAT

From 1 September 2024, Hungary eliminated the 5 % value‑added tax on prescription medicines, lowering the rate to 0 %. The government says the change will cut drug costs for patients, with an estimated price reduction of about 4.8 % (roughly 56 ft per box). Fidesz MP Takács Péter criticised the measure as modest and argued it fell short of campaign promises.

Starting in the autumn, the VAT on firewood used for heating fell from 27 % to 5 %. Finance Minister Kármán András announced the reduction, targeting roughly 1.5 million households for inclusion in the utility‑cost‑reduction scheme. The GKI institute estimates an average annual saving of about 24 000 HUF per family, while the state foregoes roughly 15 billion HUF in revenue.