The Hungarian government is planning a significant increase in excise duties on tobacco products, potentially pushing up cigarette prices by almost HUF 300 per pack from November.
The proposed tax hike was tucked into a bill submitted to Parliament on Monday, which primarily concerns measures linked to financial support for diesel drivers facing higher fuel prices, Telex reports.
The government has requested an expedited procedure for the bill, meaning Parliament could vote on it as early as Tuesday. If approved, the new tobacco tax rates would take effect on 1 November.
Cigarette tax could rise by more than HUF 250 per pack
Under the proposal, the minimum excise duty on cigarettes would increase from HUF 47,140 to HUF 59,800 per 1,000 cigarettes. For a standard pack of 20 cigarettes, this would mean the minimum excise tax would rise from HUF 943 to HUF 1,196 — an increase of HUF 253 per pack. (1 euro = 365 forints)
The actual retail price increase could be even higher. According to calculations cited by Index, a typical pack could become almost HUF 300, or around 10%, more expensive. The proposed changes would affect almost all tobacco and nicotine products.
| Product | Current excise duty | Proposed excise duty |
|---|---|---|
| Cigarettes | HUF 33,690/1,000 + 24% of retail price, but at least HUF 47,140/1,000 | HUF 36,720/1,000 + 24% of retail price, but at least HUF 59,800/1,000 |
| Cigars, cigarillos | 14% of retail price, but at least HUF 5,450/1,000 | 14% of retail price, but at least HUF 6,100/1,000 |
| Fine-cut tobacco | HUF 29,270/kg + 5% of retail price | HUF 32,200/kg + 5% of retail price |
| E-cigarette liquid | HUF 38/ml | HUF 41/ml |
| Disposable products containing tobacco or used with tobacco | HUF 40/item | HUF 50/item |
| Liquids in the new tobacco-product categories | HUF 79/ml | HUF 100/ml |
| Smokeless tobacco products | HUF 29,270/kg | HUF 32,200/kg |
| Nicotine products replacing smoking | HUF 29,270/kg | HUF 31,610/kg |
| Heated tobacco products | HUF 40/item | HUF 50/item |
The government says the differentiated increases are intended to address differences in the current tax burden between various tobacco and nicotine products, as well as to secure budget revenues and offset the social and economic costs of smoking.
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Why is the tax increase part of a fuel-support bill?
The tax changes appear in a bill whose main purpose is to introduce measures related to rising fuel prices, including a monthly HUF 5,000 subsidy for diesel drivers. The government has not explained why the tobacco tax increase was included in the same legislation.
The bill was submitted to Parliament on Monday morning, and the government has requested an expedited procedure, arguing that the measures are of overriding national interest. The fuel-support provisions would enter into force shortly after the law is promulgated. The tobacco provisions, however, would not take effect until 1 November.
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Parliament could decide within days
The proposed changes have already attracted criticism from the Villanypára Association, which represents interests related to vaping products. The organisation said the proposal would fundamentally alter the taxation of tobacco and nicotine products without meaningful professional consultation or sufficient preparation time.
It also highlighted the differing increases between product categories. According to its calculations, for example, the excise duty on heated tobacco products would rise by 25%, while the tax burden on cigarillos would remain essentially unchanged.
The pace of the legislation is also notable. The bill was submitted on Friday evening and was already being considered by Parliament under an expedited procedure on Monday. MPs had only three hours to submit amendments, while the combined debate and final vote were scheduled for Tuesday, 15 September.
If Parliament approves the proposal, the new excise duty rates will come into force on 1 November 2026, leaving smokers less than seven weeks between the parliamentary decision and the planned tax increase.
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Good move! Unfortunately most tobacco users still going to buy it. Addiction is hard to break. Makes me sick following a person front of me smoking. I wish the Government ban smoking in public and make weed legal. Yes! LEGAL!
Smoking rates in Hungary remain absurdly high when much healthier alternatives are now widely available elsewhere. Nicotine fanatics have mostly transitioned to vaping products in western Europe where tobacco smoking is now seen as laughably old fashioned. As recently as two years ago all vaping products were forbidden in Hungary along with their import. I wonder if this is still the case?