Hungarian government proposes steep excise hikes on cigarettes and other tobacco products starting November

On Monday the Hungarian kormány delivered a comprehensive amendment package to the Országgyűlés that combines fuel-price assistance with a broad hike in excise duties on tobacco. The cabinet has invoked an exceptional legislative process, aiming for a parliamentary vote by Tuesday and citing a heightened national interest as justification. The tobacco component would lift the baseline tax on cigarettes, as well as on cigars, pipe tobacco, finely cut tobacco, smokeless products, e-liquid refills and heated-tobacco items.

While the exact price impact on consumers remains uncertain, the government expects the higher taxes to translate into higher retail prices from November 1 onward. The proposal also includes provisions for fuel subsidies that could become effective the day after the law is announced.