Hungarian news portal, Figyelo.hu reported, that food manufacturers subject to the tax may react by developing new recipes. In the case of salty snacks, companies are expected to reduce salt content slightly, which will not noticeably affect the taste (but could bring them down below the mandated level) while other manufacturers are expected to create a product portfolio which includes food with reduced caffeine, sugar and salt content.
Krisztina Bélai, head secretary of the Federation of Hungarian Confectionery Industries, pointed out that the tax being applied only to pre-packaged sweets means that some price-sensitive consumers will opt for lower quality bulk candy. Some manufactures subject to the tax instead of makeing their offerings less salty and sugary, are deciding to lay off employees and delay already-planned expansions. One of the first was the German owner of Chio Magyarország Kft. - makers of the delicious salty crisps - which announced that because of the tax it would not build a HUF 1 billion (€3.66 million) factory to make peanut-flavored products and popcorn in Hungary.
Last Updated on Friday, 30 August 2013 09:11