Hungary: a foreseeable drop in the prices of e-liquids
Coming into force on March 1, a reduced excise tax on e-liquids containing nicotine dropped prices from HUF 55 per ml to HUF 20 per ml. In Hungary, black market sales are thought to account for around 80-85% of all e-liquid sales, and BAT has estimated that while there are around 200,000 e-cigarette users in the country , many of them may not know that they are buying unregulated products.
In Hungary, black market sales are said to account for around 80-85% of all e-liquid sales.
“Hungarian e-cigarette consumers should be able to access quality refill liquids just like in other European countries,” says Zoltán Orosz, Country Manager for Hungary at BAT Central Europe. “The sale of illegal products, in addition to depriving Hungary of considerable tax revenue, could endanger e-cigarette users, as these products probably do not meet Hungarian and European quality and safety standards. “
“We are proud that our refill liquids in national tobacco shops undergo rigorous testing by the committed BAT group research team, and that our e-liquids meet all EU requirements,” Orosz added. . “We have taken steps to increase domestic consumers’ access to quality-assured products. Meanwhile, we are doing everything we can to keep e-cigarettes a safe option for smokers looking for an alternative to traditional cigarettes. “
Hungary sued by EC over tobacco taxes
Meanwhile, in 2019, the European Commission (EC) reported Hungary to the Court of Justice of the European Union (CJEU) for failing to apply the required minimum excise duty on cigarettes, in accordance with the European Union (EU) regulations.
A press release on the EC website explained that Hungary had until December 31, 2017 to gradually increase excise duties on cigarettes and meet the minimum threshold required by the EU. However, this has not been done and the excise duty remains lower than what is required by the European Union.
Read more : Budapest Business Journal
Economic research: High taxes on e-cigarettes lead to higher smoking rates