Parliament approved a one-off levy on tobacco companies amounting to as much as 4.5 per cent of net sales to fund health costs associated with smoking, the website Politics.hu reported.

Due next year, the duty of 4.5 per cent applies to net revenue in excess of HUF 60 billion (EUR 191 million), which would include local units of Philip Morris International, British American Tobacco and Imperial Tobacco and Japan Tobacco International, based on data compiled by Portfolio.hu. A 2.5 per cent surcharge would be levied on sales between HUF 30 billion and HUF 60 billion and 0.2 per cent on net revenue from HUF 30 million to HUF 30 billion. The vote was 123 in favour, 38 opposed and 23 abstentions, according to Politics.hu.
Separately, local units of the four tobacco companies mentioned above said government plans to centralize distribution of tobacco products in one would cost the economy jobs and the government in lost tax revenue, the Budapest Business Journal reported. The criticism reportedly was levelled in a joint statement. The state plans to establish or designate the sole distribution firm, the journal said.