Hungary Expects E-Liquid Prices to Fall
Hungary cut the excise tax on nicotine e-liquid from 55 forints to 20 forints per ml starting March 1, a move expected to lower prices and help curb black-market sales.
Effective March 1, the excise tax on nicotine-containing e-liquids was reduced, with the rate falling from 55 forints per milliliter to 20 forints per milliliter. In Hungary, black market sales are believed to account for about 80% to 85% of all e-liquid sales. British American Tobacco estimates that although there are around 200,000 vaping users in the country, many of them may not even realize they are buying unregulated products.
In Hungary, black market sales are believed to make up around 80% to 85% of all e-liquid sales.
Zoltán Orosz, Hungary area manager for British American Tobacco Central Europe, said: “As in other European countries, vaping consumers in Hungary must have access to high-quality refill liquids.” “In addition to depriving Hungary of significant tax revenue, the sale of illegal products may also endanger vaping users, as these products may fail to meet Hungarian and EU quality and safety standards.”
Orosz added: “We are proud that the refill liquids available in national tobacco shops are rigorously tested by teams backed by the BAT Group’s research commitment, and that our e-liquids meet all EU requirements.” “We have taken steps to increase domestic consumers’ access to quality-assured products. At the same time, we are doing everything we can to make vaping a safer option for smokers looking for an alternative to traditional cigarettes.”
European Commission Takes Hungary to Court Over Tobacco Tax
Meanwhile, in 2019, the European Commission (EC) referred Hungary to the Court of Justice of the European Union (CJEU) because the country failed to apply the minimum excise duty on cigarettes required under European Union (EU) rules.
A press release on the European Commission’s website explained that Hungary had been granted until December 31, 2017 to gradually raise cigarette excise duty and reach the minimum threshold required by the EU. However, this was not achieved, and the excise duty remained below the rate required by the EU.
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