Background: On November 22, 2016 the National Assembly amended Hungary’s current excise law. Among the amendments adopted was the inclusion of novel tobacco products (“NTP”) among the list of goods subject to excise taxation.
The tax became effective on 1 January 2017.
According to the amended excise law fiscal marking on the packaging of NTPs will not be mandatory as there will be no fixed prices for these products. The rate of tax will be fully specific.
A stick of tobacco used in a heating device has been designated the taxable base. The rate of excise is set at HUF 10 per stick and is not scheduled to increase in July 2017 when tax on other tobacco products is adjusted.
For hybrid NTPs, in which a liquid is heated in combination with tobacco to create a vapor, the tax is set at HUF 70 per milliliter.