Public health product fee: Price increase, loss of investments, and reducing government revenues

Forced price increase, declining sales, stagnant or declining revenues, layoffs, loss of investments – several companies taxed with the public health product fee are suffering from these negative trends, while they are not likely to pay so much money in the budget as last year.

“The new tax is a barely noticeable item in the budget, its public health impact is also negligible, but brought so many difficulties to a relatively small market. Many manufacturers were forced to carry out dismissals. The snack manufacturers are expected to pay about 2.9 billion HUF public health product tax to the budget, but a 1.4 billion HUF shrinkage is expected due to the VAT, the charges, and the business tax.” – sums the market research coordinator of Chio.