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Tag: hungary

  • Hungary Dismantles $67M Illegal Cigarette Network

    Hungary Dismantles $67M Illegal Cigarette Network

    The largest illegal cigarette manufacturing network ever uncovered in Hungary has been dismantled by the country’s National Tax and Customs Administration (NAV). Coordinated raids at 41 locations in May led to the seizure of over 24 billion forints’ ($67 million) worth of contraband tobacco products and equipment, NAV said in a statement.

    Authorities confiscated 156 tons of tobacco, enough to produce 13 million packs of cigarettes, 1 million packs of counterfeit cigarettes, 48.5 million empty cigarette boxes, three full cigarette production lines, processing machinery, forklifts, packaging equipment, and radio-jamming devices.

    The estimated budget loss in excise and VAT would have reached 81 billion forints ($226.8 million) had the goods entered the market.

    Six suspects, one Hungarian and five dual Moldovan-Romanian citizens, have been detained and formally charged with organized tax fraud. One additional suspect is still at large and the subject of an arrest warrant.

  • BAT to Make Smokeless Products in Hungary

    BAT to Make Smokeless Products in Hungary

    Photo: Csak Istvan

    BAT will establish a HUF60 billion ($162.12 billion) factory for smokeless products in Pecs, Hungary, creating 450 new jobs, reports Hungary Today.

    BAT already employs almost 1,000 people. According to Minister of Foreign Affairs and Trade Peter Szijjarto, the project will contribute to the success of two important Hungarian economic policy objectives—to boost exports and protect the environment. The Pecs factory is carbon neutral and will export more than 80 percent of its products, the minister noted.

    The project will also help develop Hungary’s southwestern region, which traditionally has received fewer investments than its western counterparts.

    Usman Zahur, BAT’s regional director for Central Europe, pointed out that the Pecs unit could become a major manufacturing center for smokeless alternatives, building on more than 30 years of cooperation with Hungary.

    “This significant investment is an important step toward a smoke-free world, offering smokers better alternatives to cigarettes,” he was quoted as saying. “The investment further reinforces Hungary’s strategic importance in our long-term plans to have 50 percent of our revenues from new category products by 2035. Our manufacturing capabilities, highlighted by the Pecs center, are key to achieving this goal.”

  • New Hungarian Rules May Backfire

    New Hungarian Rules May Backfire

    Image: Tobacco Reporter archive

    Proposed amendments to Hungary’s rules on e-cigarettes and nicotine pouches may hinder access to safer alternatives for smokers, according to the World Vapers’ Alliance (WVA).

    “While it’s important to ensure the safety and proper labeling of nicotine products, it’s equally crucial to avoid excessive regulation that could impede the availability of harm reduction products for smokers looking to transition away from combustible cigarettes,” said WVA Director Michael Landl in a statement.

    The proposed amendments, with a maximum nicotine content of 17 mg per consumption unit, reflect an approach that may inadvertently limit the appeal of nicotine pouches to smokers seeking alternatives, according to critics.

    “Moreover, the WVA expresses concerns about the potential implications of the draft decree’s proposed modifications to vaping product regulations,” the organization wrote. “The amendments, which target unit packet definitions, nicotine amounts and labeling requirements, could impose unwarranted restrictions on vaping products. While addressing health concerns is important, the proposed changes should be carefully evaluated to ensure they do not deter smokers from adopting less harmful alternatives.”

    Whilst health and safety standards are crucial, regulations should be crafted with a balanced approach that considers both consumer health and the potential of these products to save lives, according to Landl. 

    “We encourage the Hungarian government to start accepting reality: harm reduction works. This year, Sweden is becoming the first smoke-free country due to a consumer-friendly harm reduction approach,” he said. “It is high time to learn from the Swedish experience and thereby save thousands of Hungarian lives. With a smart harm reduction approach, Hungary can become smoke-free.”

  • Filtrona Opens New Filters Center

    Filtrona Opens New Filters Center

    Photo: Filtrona

    Filtrona has opened a new Centre of Excellence (COE) in Budapest, Hungary. Combining multiple advanced filter manufacturing machines, the COE will increase the company’s production capacity and speed-to-market of sustainable filter solutions. The COE enables tobacco companies to develop and manufacture a portfolio of sustainable tobacco products by leveraging Filtrona’s expertise in innovative filter designs, processing methods and knowledge of materials.

    The COE combines Filtrona’s extensive experience in manufacturing non-woven filters with advanced, high-speed production technology and the latest testing methods to produce sustainable filters for various tobacco product applications. These include cigarettes, heated tobacco products, cigarillos, cigars, and RYO and MYO cigarettes.

    Globally, consumers and regulators are pushing for more environmentally sustainable solutions for consumer goods, according to Filtrona. Likewise, the tobacco industry is seeking plastic-free alternatives by focusing on the use of wood pulp based non-woven materials, such as papers. The EU Single-Use Plastic Directive provides a roadmap for the phasing-out of single-use plastics, which includes cellulose acetate tow. Using the EU Directive as a blueprint, tobacco companies in territories outside the EU are expected to follow a similar path in reducing single-use plastics over time.

    “As the world’s leading producer of sustainable filter solutions, Filtrona is advancing our sustainability journey by launching our Centre of Excellence to expand our portfolio of sustainable products at a faster pace,” said Filtrona’s Global Director of Innovation and ESG Hugo Azinheira. “With the EU SUPD driving a wider adoption of plastic-free tobacco products, our new production line has the capability to meet the evolving needs of customers, consumers, and regulators rapidly.”

     

  • Hungary Tobacco Excise to Increase

    Hungary Tobacco Excise to Increase

    Image: Daniel | Adobe Stock

    Excise duties on tobacco products and alcohol products will increase in Hungary beginning January 2024, according to Finance Minister Mihaly Varga’s tax plan, reports Hungary Today.

    Under the plan, the price of a pack of cigarettes could increase by up to 250 forints.

    The tax increase is necessary, according to the finance ministry, because the European Union minimum tax is set in euros.

  • Cigarette Smugglers Busted in Hungary

    Cigarette Smugglers Busted in Hungary

    Image: alexlmx

    An operation, led by Hungary and supported by Europol and Eurojust, and involving law enforcement authorities in Austria, the Czech Republic and Poland has led to the dismantling of a criminal network involved in large-scale tax fraud concerning cigarette smuggling.

    The investigation was initiated as the result of intelligence analyzed by Europol. In a recent action day, law enforcement officers arrested one suspect and seized a large amount of valuables.

    In March 2021, the Hungarian Tax and Customs Administration seized nearly 23 million unsealed cigarettes that arrived by plane from Dubai to the Hungarian airport of Debrecen. Produced in the United Arab Emirates, the tobacco products were concealed in car parts being shipped on cargo planes. Hungarian authorities intercepted one shipment as it was leaving the airport in four trucks with Polish license plates.

    Officials suspect that there were two similar deliveries earlier that year, on Jan. 29, 2021, and Feb. 26. 2021. The estimated economic damage to the European Union budget caused by this organized crime group’s tax evasion on the tobacco products amounts to more than €8.75 million.

    On August 16, 2022, law enforcement officers seized €750,000 in various currencies, seven luxury vehicles and 49 luxury watches from the Hungarian citizen who was arrested.

    The authorities are looking for three further suspects for whom European and international arrest warrants have been issued.

    Europol facilitated the information exchange, cross-checked operational information against Europol’s databases and provided additional analytical support to help advance the national law enforcement authorities’ investigations. Eurojust actively facilitated cross-border judicial cooperation between the national authorities involved, including the execution of European investigation orders.