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.


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 name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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