The tax would be imposed on tobacco manufacturers and registered traders, but not retail tobacco traders.

A 0.2% tax, with a minimum of Ft 30 million, would be applied on annual net revenue up to Ft 30 billion, based on 2014 figures.

The rate rises to 2.5% on income of Ft 30-60 billion, and to 4.5% on revenues over Ft 60 billion.

The law would enter into force on February 1 and companies would have until June 30 to declare and pay the tax.

As with the proposed retail tax, foreign companies would bear 80% of the load, Népszabadság writes.

Philip Morris and British American Tobacco, the two leading tobacco companies, both US-owned, would be hardest hit, as they would have to pay Ft 6.5 billion and Ft 3.5 billion, respectively.

Imperial, the third largest company in Hungary, would have a Ft 1.7 billion payment due, whereas Hungarian-owned Continental, the fourth largest, would pay Ft 48.8 million.

Source: Hungary Around the Clock

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