Hungary asked to alter tax-change rules

The European Commission has warned that it might refer to the European Court of Justice Hungarian legislation that runs counter to an EU directive regulating tobacco trade.

In Hungary, tax rates are included on tobacco products packaging, and when taxes change, packs with the old tax rates cannot be sold after 15 days of the new tax rate coming into force.

The commission says, however, that excise duties are harmonized under an EU directive that does not allow the restriction of the trade in tobacco products once they are released for consumption.

The commission has asked Hungary to change its legislation, a request that takes the form of a “reasoned opinion”: the second stage of an infringement procedure.