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5 clusters · 20 sources · 39 days · First seen · Last updated

Hungary tobacco tax increase and rise in illicit trade

Overview

The Hungarian government has approved a plan to increase tobacco excise taxes to provide additional funding for the national healthcare system. The legislative package includes a 9% increase for cigarettes, a 25% increase for heated tobacco products, and a 26% increase for fine-cut tobacco. Officials noted that the cost of treating tobacco-related illnesses—which cause between 20,000 and 25,000 deaths annually—is nearly double the revenue currently generated from tobacco taxes. In 2025, the direct and indirect healthcare costs associated with tobacco consumption were estimated at approximately 1,477 billion forints, or 1.7% of the country’s GDP, while tobacco-related tax revenue totaled roughly 775 billion forints.

The tax adjustments are expected to generate approximately 90 billion forints in additional revenue. Following an accelerated excise tax hike approved by Parliament, significant price increases were set to take effect on November 1. Rising domestic costs have prompted consumers to look toward neighboring countries for savings, as prices in Hungary are significantly higher than in Austria and Croatia. For instance, 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 hike.

Recent research indicates that these measures may be accompanied by a rise in illicit trade. A YouGov study found that 10 percent of traditional cigarettes examined were counterfeit, an increase from 8.9 percent in the previous half-year. The highest rates of counterfeits were recorded in Eastern Hungary at 11.8 percent. Additionally, because flavored e-cigarettes are banned in Hungary, demand has shifted to unregulated channels. Over 80 percent of sampled disposable e-cigarettes exceeded EU legal nicotine limits. This strengthening black market for illegal, untaxed products could result in an annual state tax revenue loss of at least 80 billion forints.

Entities

Hungarian government · Országgyűlés · Villanypára Egyesület · András Kármán · YouGov

Timeline

  1. [BUSINESS] 3 sources
    Hungary to implement tobacco excise tax increases in November

    Hungary will raise tobacco excise taxes on November 1, with heated tobacco products seeing a 25 percent tax hike and cigarettes a 9 percent increase.

  2. [BUSINESS] 2 sources
    Counterfeit cigarettes and illegal e-cigarettes rise in Hungary

    A YouGov study shows rising counterfeit cigarette rates in Hungary and a surge in illegal, high-nicotine e-cigarettes, potentially costing the state 80 billion forints in tax revenue.

  3. [BUSINESS] 2 sources
    Hungary to increase tobacco excise taxes in November

    Hungary is implementing an accelerated excise tax hike on tobacco and heated products starting November 1, driving consumers to seek cheaper alternatives in neighboring Croatia and Austria.

  4. [HEALTH] 2 sources
    Hungary to fund healthcare using increased tobacco excise tax revenue

    The Hungarian government will use increased tobacco excise tax revenue to fund healthcare, aiming to offset the high medical costs associated with tobacco-related illnesses.

  5. [BUSINESS] 12 sources
    Hungary to increase tobacco excise taxes to fund healthcare

    Hungary is raising tobacco excise taxes starting November 1, with revenue earmarked for healthcare to offset the high costs of treating smoking-related illnesses.

Sources

10perc.hu · 168.hu · bbj.hu · economx.hu · egeszsegkalauz.hu · figaro.postr.hu · g7.hu · hirklikk.hu · hovege.hu · hvg.hu · index.hu · kiskegyed.hu · mfor.hu · novekedes.hu · nyugatifeny.hu · pecsistop.hu · privatbankar.hu · promotions.hu · szegeder.hu · vital.hu

This summary has been updated 3 times: see revision history