Kormany.hu said some 20,000-25,000 people die of diseases caused by smoking each year, adding that the cost of treating those disorders is about twice as high as the total excise tax on tobacco products.

The annual adjustment of excise rates due in January is expected to generate 90 billion forints (EUR 245m) in tax revenue, which will serve to cover the costs of treating smoking-related and other diseases, the website said.

According to ministry calculations, the direct and indirect health-care costs associated with tobacco consumption amount to 1.7 percent of GDP. In 2025, this amounted to just under 1,500 billion forints.

In contrast, revenue from excise duties and value-added tax on tobacco products totaled around 775 billion forints last year, so the government is initiating an increase in excise duties on tobacco products to mitigate this imbalance, the website said.

The government is making simultaneous efforts to reduce smoking, promote prevention and improve health services, the website said, adding that the increased revenue would contribute to "better and safer" services. Higher tobacco prices could also reduce domestic consumption, which would also lead to an indirect reduction of health-related costs, it added.

The excise tax on cigarettes will increase by 9 percent, while the tax on heated tobacco products will be hiked by 25 percent and on cut tobacco by 26 percent in November.

Source: MTI – Hungary’s national news agency since 1881.

Photo: Pixabay

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