Tobacco growers: the excise tax increase strengthens the black economy

According to the Association of Hungarian Tobacco Industry Investors the proposal submitted on Tuesday in accordance with the increase of the excise tax of tobacco products may be risky in many ways, and will have negative consequences.

The association in its communication sent to MTI on Wednesday stresses that the excise tax increase will burden the consumers, and the more dramatic rise in prices will greatly increase the market of illegal products.

According to the association this will seriously affect the development of state tax revenues, and will have a serious effect on the local tobacco market, on employment and on the production processes.  (MTI)