BAT: Tobacco Tax Could Raise Cigarette Prices In Hungary
- 14 Nov 2014 3:00 AM
A proposed one-off tax on tobacco companies could raise the price of cigarettes by 70-80 forints (EUR 0.25) per pack, daily Népszabadság said on Friday, citing an official from British American Tobacco (BAT). Attila Tóth, who handles BAT’s relations with the government, told the paper that the sector had not generated “extra profit” for years.
The tax will leave the sector with no other alternative but to raise prices, while the black market, estimated at 12% already, will grow, he added. Tóth said the sector pays an annual 425 billion forints into the central budget.
The tax was proposed in a bill submitted to Parliament by an MP of governing Fidesz on Thursday.
The progressive tax would be set at 0.2% on net revenue of up to 30 billion forints, at 2.5% for 30 billion forints to 60 billion forints and at 4.5% for anything above that. The proceeds from the tax would be earmarked exclusively for financing state-funded health care.
Source www.hungarymatters.hu
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