Hungary proposes significant excise tax increases on tobacco products

The Hungarian government has submitted a legislative proposal (T/669) that would significantly increase excise taxes on various tobacco and nicotine products. While the bill is primarily framed around fuel price support measures, it includes substantial modifications to the tax structure for tobacco goods.

Under the proposal, the excise tax on cigarettes would rise to at least 59,800 HUF per 1,000 units, or 24 percent of the retail price. This change could result in a price increase of nearly 10 percent, or approximately 300 HUF, per pack. The tax adjustments also extend to other products, including:

• Cigars and cigarillos: at least 6,100 HUF per 1,000 units. • Fine-cut and other tobacco: 32,200 HUF per kilogram plus 5 percent of the retail price. • E-liquid: 41 HUF per milliliter. • Disposable tobacco products: 50 HUF per unit. • Heated tobacco products: 50 HUF per unit. • Nicotine-containing products intended to replace smoking: 31,610 HUF per kilogram.

The Villanypára Egyesület (VAPER) has criticized the proposal, noting that the government intends to pass the tax hikes quickly without professional consultation or adequate preparation time.