Hungary has been asked by the European Commission to change the excise rates currently charged on liquor and tobacco products. The structure of alcohol duties within the EU has been harmonized by an EU Directive and member states must therefore impose a single rate of duty on spirits calculated on the basis of the alcohol content of the product. Hungary is considered to be in breach of this requirement and if the legislation is not amended to comply with the demand of the European Commission within two months the issue can be referred to the European Court of Justice.
Hungary has also been requested by the European Commission to change the legislation applying a sales restriction on tobacco products that have been released for consumption. Excise duties are imposed on tobacco through a system of tax markings so that if the tax rate of excise duty or value-added tax (VAT) is amended the tobacco products containing the markings indicating the old tax rate may not be sold by wholesalers and importers for a period of more than fifteen days after the date on which the new rate becomes effective. The Commission considers that Hungary is not complying with this and is therefore asking for the rules in Hungary to be revised.
