Excise tax for tobacco products to increase in February and July

The government expects HUF 20bn revenue from the tax increase. The current excise tax on cigarettes is HUF 10,500 for every 1,000 pieces, or 28.4pc of the retail price at the end of January. The Hungarian Association of Tobacco Industry Investors (DBMSZ) believes sales in the sector could drop up to 5pc from HUF 500bn in 2011 as a result of the tax increase. 

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