close
Share with your friends

Hungary: EC’s referral to CJEU regarding excise tax on cigarettes

Hungary: EC’s referral to CJEU regarding excise tax

The European Commission today announced its decision to refer Hungary to the Court of Justice of the European Union (CJEU) for failing to apply the minimum EU threshold for excise duty on cigarettes pursuant to EU rules on manufactured tobacco.

1000

Related content

As explained in today’s EC release, Hungary was allowed a long transitional period (until 31 December 2017) to apply a gradual increase in the excise tax (duty) rate on cigarettes up to the required minimum threshold. Currently, the excise duty applied by Hungary remains below the EU threshold, which the EC found is generating distortions of competition with other EU Member States.

The European Commission in January 2019 sent a letter of formal notice to Hungary, followed by a reasoned opinion in June 2019. Since Hungary has not yet complied, the EC today announced it was bringing the matter before the CJEU.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal