Their plan goes up in e-smoke
In 2010 the state budget’s revenue from the excise duty and VAT on tobacco products amounted to HUF 360 billion. Hungary’s parliament passed the new ‘tobacco shop law’ in September. The new law makes the selling of tobacco products a state monopoly from 1 July 2013. NRC conducted a representative survey about the new law and its influence with 1,200 participants (internet users in the 18-75 age group). 38 percent of participants said that they smoke occasionally and 20 percent have already quit smoking; 81 percent heard about the new law (from television and the internet). 58 percent of participants do not agree with this measure and among smokers this proportion is 82 percent. 76 percent of internet users are of the opinion that smoking habits will not change because of the new law, what is more, 66 percent think that the black market will profit from the new regulation. 82 percent of participants are afraid that people will lose their jobs if cigarette will be sold at fewer places. Smoking internet users spend HUF 726 on a pack of cigarette on average; if the price reached HUF 1,000 28 percent would put the cigarette down. 97 percent of survey participants heard about electronic cigarette, most of the time from friends and acquaintances or read about it on the internet. 12 percent of them use it and 35 percent of these e-cigarette users purchased it online, while another 35 percent bought it in a shop. So while tobacco product sales are contracting and prices are getting higher, e-cigarette (the selling of which is not limited by communication restrictions, which can be ordered online and can even be used in a restaurant or bar) is considered to be an environmentally friendly alternative by smokers.
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