‘Hungary Tobacco Tax Too Low’

Hungary has failed to comply with European Union regulations by keeping the excise tax on tobacco products below the required threshold, reports Hungary Today, citing the Court of Justice of the European Union (CJEU).

In October 2019, the European Commission (EC) complained to the CJEU that Hungary had failed to gradually raise the excise tax on tobacco products to the required threshold by the deadline of Dec. 31, 2017.

Under EU guidelines, the excise tax on tobacco products must reach 60 percent of the average retail price but at least €90 ($105.88) per 1,000 cigarettes. The 60 percent ratio does not apply to prices above €115 per 1,000 cigarettes.

The EC said Hungary had failed to reach that threshold in 2017 or in subsequent years until the suit was brought, distorting competition within the bloc and violating EU health protection regulations