BAT: Vaping Product Prices in Hungary Expected to Fall

On March 19, news emerged that British American Tobacco (BAT), a global tobacco giant, indicated in a press release that due to changes in tax regulations, high-quality alternative tobacco products may soon become cheaper and more accessible to Hungarian consumers.

The report noted that starting from March 1, the excise tax on nicotine-containing e-liquids was reduced, with prices dropping from 55 forints per milliliter to 20 forints per milliliter. In Hungary, black market sales are estimated to account for about 80% to 85% of all e-liquid sales, and BAT estimates that despite having around 200,000 e-cigarette users in the country, some of them may not be aware that they are purchasing unregulated products.

Zoltán Orosz, the regional manager for BAT Central Europe in Hungary, stated: "Like in other European countries, Hungarian e-cigarette consumers must have the opportunity to access high-quality supplementary liquids. The sale of illegal products not only robs Hungary of significant tax revenue but may also endanger e-cigarette users, as these products may not meet Hungary's and the EU's quality and safety standards."

Orosz added: "We are proud that our supplementary liquids sold in national tobacco shops have undergone rigorous testing by the BAT Group's dedicated research team, and 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 e-cigarettes a safe choice for smokers looking for alternatives to traditional cigarettes."

Meanwhile, in 2019, the European Commission (EC) reported Hungary to the European Court of Justice (CJEU) for failing to impose a minimum excise tax on cigarettes in accordance with EU regulations.

A press release on the EC website explained that Hungary was supposed to gradually increase the excise tax on cigarettes before December 31, 2017, to reach the EU's minimum threshold. However, this was not achieved, and the excise tax remains below EU requirements.