The government is proposing a significant increase in excise duties on tobacco products in a bill submitted on Friday. If Parliament approves the proposal, the price of a pack of cigarettes could rise by almost 10%, or around HUF 300, from November 1.
The increase in tobacco taxes has been included in an omnibus bill containing measures related to fuel prices. Bill T/669 was submitted to Parliament at 6:38 p.m. on Friday, September 11, and was already placed on the agenda under an expedited procedure on Monday. Parliament could vote on the proposal on Tuesday, September 15.
According to the proposal, the excise duty on cigarettes would increase to HUF 36,720 per 1,000 cigarettes, a 9% increase. In addition, the tax would amount to 24% of the retail selling price, but at least HUF 59,800 per 1,000 cigarettes, representing a 26.9% increase in the minimum tax.
In practice, the changes would mean that consumers could have to pay almost HUF 300 more per pack of cigarettes.
Taxes on other tobacco and nicotine products would also increase
The bill would not only affect cigarettes. For cigars and cigarillos, the excise duty would be 14% of the retail price, but at least HUF 6,100 per 1,000 units.
For fine-cut and other smoking tobacco, the tax would be HUF 32,200 per kilogram, plus 5% of the retail price. The excise duty on e-liquid would increase to HUF 41 per millilitre.
The proposal would also introduce separate tax rates for newer product categories. Disposable products containing tobacco or used together with tobacco would be subject to an excise duty of HUF 50 per unit, while the liquid in such products would be taxed at HUF 100 per millilitre.
According to the government’s justification, the excise duties are being adjusted at “differentiated rates by product category” because some products currently face a lower tax burden than the tobacco products they can replace. The proposal says the changes are intended, among other things, to offset the social and economic costs associated with smoking, secure budget revenues and reduce differences in the taxation of tobacco products.
Tax hike could take effect on November 1
The legislation could be adopted very quickly: Parliament may hold both the combined debate and the final vote on the bill as early as Tuesday.
If Parliament approves the proposal, the new excise duty rates on tobacco products would take effect on November 1, 2026.
This means smokers could face significantly higher prices within just a few weeks, with the price of an average pack of cigarettes potentially increasing by almost HUF 300.
