Hungary to increase tobacco excise taxes in November

Starting November 1, tobacco products in Hungary will face significant price increases due to an accelerated excise tax hike approved by Parliament. The tax changes affect various categories: traditional cigarettes will see a minimum tax increase of approximately 27 percent per thousand sticks, heated tobacco products will face a 25 percent tax increase, and e-cigarette liquids will also see higher levies.

As domestic prices rise, consumers are increasingly looking toward neighboring countries to save money. Currently, prices in Hungary are already higher than in Austria and significantly higher than in Croatia. For example, a carton of cigarettes in Croatia is currently roughly 8,000 HUF cheaper than in Hungary, a gap expected to widen to 10,000 HUF following the tax hike.

Under EU regulations, individuals may legally bring in up to 800 sticks (four cartons) of tobacco products from other member states. The government stated that the additional revenue generated from these tax increases is intended to be allocated to the healthcare system.