The tax would be based on net revenue and set at 0.2% for HUF 30 mln to HUF 30 bln, at 2.5% for HUF 30 bln to HUF 60 bln, and at 4.5% for anything higher. The proceeds from the tax would be earmarked exclusively for financing state-funded healthcare.

The tax aims to create a “fair(er) sharing of the public burden” and to finance the restructuring of the healthcare system, according to its author, MP Kristóf Szatmáry. Because it is a one-off tax, “tobacco industry companies will, in reality, bear the brunt of the burden, and market players will not pass on the burden to consumers”, according to the bill’s justification.

read the full story: http://www.bbj.hu/economy/bill-would-make-tobacco-companies-pay-one-time-healthcare-contribution_88137