Economy Minister Gyorgy Matolcsy on Friday submitted draft legislation to parliament which will raise the excise tax on tobacco and cigarettes in several phases this year and next.

Starting this year the excise tax on cigarettes would be raised in three steps to HUF 19,400 forints (EUR 73.00) per 1,000 cigarettes by 1 July 2012, from the current HUF 18,080, state news agency MTI said.
The government said Hungary has to raise the tax gradually in order to meet a minimum tax content requirement set by the European Union by 2018, and the hike would also help boost budget revenues from this type of excise tax.
The proposed changes also include an amendment that would reduce the excise tax on E85 ethanol fuel blend and another one that raises the revenue threshold for mandatory auditing from HUF 100 million to HUF 200 million for business years started or starting in 2012 or 2013 and to HUF 300 million for business years starting in 2014.
The changes likely will be approved as the governing Fidesz party has a majority in parliament. (pi)