The 2012 Budget, which was passed on Tuesday, includes an increase of excise tax of tobacco that should add HUF 20 billion (EUR 65 million) in revenue.

The tobacco tax hike was one of several measures which Economy Minister Gyorgy Matolcsy last Thursday announced to cover a HUF 320 billion (EUR 1 billion) shortfall its 2012 budget plans which was caused by poor economic growth and a weaker exchange rate.
The government will also cancel HUF 200 billion from reserves, ministries will have to produce HUF 52 billion of new savings, and the 10 per cent monthly contribution of private pension fund members will be channeled into state coffers, reports Reuters. (pi)