NEW ACT ON EXCISE DUTY: POSTPONED ENTRY INTO FORCE
The new act on excise duty has been amended by the Hungarian Parliament on 21 March 2017. According to the amendment initiated by the Economic Committee, the new act will enter into force on 1 July 2017, i.e. 3 months later than originally planned.
The Parliament had also accepted the Economic Committee’s other proposals. Accordingly, in case of electronic cigarettes, an amount of HUF 70 of excise duty will have to be paid on each ml of fill, which contains nicotine. The excise duty for 1000 piece of cigarettes will be increased by HUF 400 to HUF 29,200.
According to the previous version of the act, the undertakings concerned were obliged to make a declaration until 28 February 2017 whether they would continue their activities affected by the excise duty. Based on the amended act, the deadline for such declaration was postponed to 15 May 2017. If a company fails to fulfill this obligation, it will lose its excise authorization.
Those companies which perform data provision via direct electronic connection are also obliged to register for testing at the Hungarian tax authority. The extended period ensures a smooth transition to the electronic excise system for the approx. 17,000 undertakings concerned.