A sharp price increase is possible: a pack of cigarettes could become more expensive by up to 1,000 forints

By: Trademagazin Date: 2025. 07. 25. 10:28

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Hungarian smokers could soon face a significant price hike: a single pack of cigarettes may cost up to 1,000 forints more due to the European Commission’s proposed excise tax reform. The Brussels plan aims to harmonize tobacco taxation across the EU, but it would have a particularly strong impact on the Hungarian market, where the current tax level does not meet the EU’s minimum threshold – reports Pénzcentrum.

EU Minimum – Hungarian Maximum?

According to the Commission’s proposal, the excise tax on cigarettes would increase from 90 euros to 215 euros per 1,000 sticks—a 139% rise. The change would not only affect traditional cigarettes but also include heated tobacco products and nicotine pouches, with proposed minimum taxes of 108 euros per 1,000 sticks or 155 euros per kilogram for heated products, and 143 euros/kg for nicotine pouches.

The steepest increase would apply to cigars and cigarillos: their excise tax would rise from 12 euros to 143 euros per 1,000 sticks—an astonishing 1,090% hike.

No Transition Period, Immediate Implementation

As it stands, the proposal includes no transitional period, meaning that the new tax rates would have to be implemented immediately once in force. In Hungary, the impact would be especially significant: under the current rules, the country would likely fail to meet the price-proportional condition, thus triggering the application of a fixed minimum excise of 274 euros—adjusted for purchasing power parity.

Industry estimates suggest this could lead to a price increase of at least 1,000 forints per pack (20 sticks), representing a potential 50% rise compared to current prices.

Brussels vs. National Sovereignty?

Industry stakeholders are concerned not only about the economic consequences—such as the expansion of the black market—but also about the implications for national tax sovereignty. Several member states, including Hungary, have emphasized that maintaining control over national tax policy is essential. Critics argue that the proposed harmonization disregards the economic and social differences among member states and raises questions about the autonomy of national budgets under centralized redistribution.