Smoke out? Tobacco revenue, VAT down for 2013
Revenue from VAT and excise tax on tobacco fell almost 9% to HUF 425 billion last year, business daily Napi Gazdaság reported today, with excise tax on tobacco came to HUF 311.6 billion for 2013 and tobacco sales generating VAT of HUF 113.4 billion.
Manufacturers stocked up on tax stamps in December 2012, which could explain part of the decline, the ‘paper surmised. The sharp drop in the number of shops where cigarettes can be purchased since the government introduced a state monopoly on retail tobacco sales may be another reason, it added.
Napi Gazdaság estimated that imported tobacco now accounts for 10% of all sales in Hungary. It also said sales of shag tobacco, which has lower excise tax content than cigarettes, were up.
Tobacco consumption may also be down, but this is not supported by any statistics, Napi Gazdaság said.
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