< Back to Heated Tobacco Products Tax Gap Map
Tax Gap of Heated Tobacco Products in Hungary
According to Act 68 of 2016 on Excise Duty, heated tobacco products are considered “novel tobacco products,” defined as tobacco products that are not cigarettes, cigars, cigarillos, smoking tobacco or electronic cigarette fluid, and therefore subject to excise taxation.
From 2017 to December 2020, heated tobacco was taxed at a fixed rate of HUF 10 per stick or unit. In 2021, the tax increased to HUF 15 per stick, and increased again to HUF 35 per stick January 1st, 2023 (Hungarian Gazette No. 93, June 4th, 2022).
Cigarettes are taxed according to a mixed excise system with a minimum excise duty. Under the Act of 2016, the rates are set as follows:
- From January 1st, 2023, the specific excise increased to HUF 29,500 per 1000 pieces, and the ad valorem rate is 24% of the retail sale price. The minimum excise is set to be HUF 41,800 per 1000 cigarettes.
Sources:
- Act 68 of 2016 on Excise Duty
Section 6, sentence 1(ea) on page 3 defines the above fixed specific excise tax rate for HTPs. - Hungarian Gazette No. 93, Jun 4, 2022
Last updated Sept. 1, 2023