BRUSSELS (Reuters) - European Union regulators have told Hungary to suspend two recent tax measures, one related to a food chain inspection fee and the other on tobacco sales, because of concerns that these give some companies an unfair advantage.
Hungarian authorities last year modified an inspection fee levied on food chain operators, allowing stores with a low turnover to be either exempted from the charge or pay a substantially lower fee than rivals with more sales.
The new rule took effect on Jan. 1, with the first payments due at the end of July.
The European Commission said Hungary had not justified the advantage given to some food operators.
It also expressed concerns on the tax on sales of tobacco products, introduced this year, where companies with a low turnover are liable to pay a 0.2 percent rate compared with a rate of up to 4.5 percent for competitors with higher revenues.
"The Commission has concerns ... that the progressivity of the rates based on turnover provides companies with a low turnover a selective advantage over their competitors, in breach of EU state aid rules," the EU executive said.
Hungary could be ordered to recover the taxes if found guilty of breaching EU state aid rules.