Hungary lowers its excise tax on e-cigarettes

A new law goes into effect today which restricts the sales of electronic cigarettes and e-cigarette cartridges to a state rune network of tobacco shops. The legislation also limits the number of tobacco shops in the country by raising the population threshold per shop from 3000 to 4000.

Lower excise tax

Another provision of the law reduces the excise tax on liquid used in e-cigarettes from HUF 55 to HUF 20 (EUR 0.06) per milliliter. The intent of the measure is to close the tax gap with neighboring countries in order to restrict illegal imports. Current tax rates on e-liquid in Serbia and Romania stand at EUR 0.037 and EUR 0.109 per ml, respectively. Croatia, on the southeastern border, has a zero-rate excise tax.