Excise Tax In Hungary

The main modifications to the Act on Excise Tax effective as of 1 January 1997 were as follows:

1. In the case of sales from compulsory reserve stocks, the taxpayer is obliged to pay excise tax on the day of the withdrawal.

2. The range of products which can be purchased tax free will no longer include products which are utilised for the production of oil derivatives, except for utilisation during oil processing.

3. Only entities with no public debts will be entitled to obtain goods tax free.

4. The excise tax on oil products, alcohol, alcoholic beverages, beer and cigarettes will increase by an average of 14.4%.

5. A number of products, including chocolate, cosmetics and silver jewellery will no longer be subject to excise tax In the case of precious metals and coffee, the excise tax has been reduced by 50%.