Having regard to the fact that our natural heritage and environmental values are part of the wealth of the nation, the preserving and protection of which and the improvement of the quality of which is a fundamental condition from the perspective of the environment and the health and quality of life of humans as without these, the harmony between human activity and nature cannot be maintained failure in which regard would threaten the health of current generations, the existence of future generations and the survival of many species. For this reason, in line with the provisions of the Constitution, the parliament created the Act on Environmental Product Tax.
The purpose of the act is to establish harmony between humans and the environment, to ensure high-level coordinated protection of the environment as a whole as well as individual elements and processes of it and to ensure sustainable development. The act promotes
- moderation of the use and pollution of the environment, prevention of damaging of the environment and the elimination and restoration of damages to the environment;
- the protection of human health and improvement of the environmental conditions of quality of life;
- the protection and sustaining of natural resources, reasonably sparing of these and operation ensuring the renewal of resources.
The Act on Environmental Product Tax classifies the products subject to tax in the following categories:
- packaging materials,
- other mineral oil products,
- electric and electronic equipment,
- advertising paper,
- other plastic products,
- other chemical products,
- office paper.
Environmental product tax payment obligation arises upon the release of the taxable product for circulation or its use for own purposes. Product tax is payable by the entity first releasing the product for circulation in Hungary or the first user of the product for own purposes or, in the case of other mineral oil products produced in Hungary, the first buyer of the entity first releasing the product for circulation in Hungary or the entity using the product for own purposes or, in the case of toll manufacturing, the toll manufacturer (hereinafter: the product taxpayer).
In the case of advertising paper, the first release for circulation in Hungary is the performance of printing services (printing and handover) in the case of domestic production. If the act does not provide otherwise, the product tax becomes payable on the date shown on the invoice in the case of first release for circulation in Hungary or, in the absence of an invoice, the date shown on other documents certifying performance of the transaction or, in the absence of this also, on the date of fulfilment of the transaction. In the case of other mineral oil products produced in Hungary, product tax payment obligation arises on the date shown on the invoice issued by the entity first releasing the products for circulation in Hungary or, if no invoice is issued, on the date of performance shown on other documents certifying performance of the transaction or, in the absence of this also, on the date of performance of the transaction or the date of recognizing the use for own purpose as expense.
In the case of use for own purposes, according to the main rule, product tax becomes payable at the following dates:
- on the date of recognition of the use for own purpose as expense,
- if a date cannot be determined based on the first point, on the date of performance of the transaction,
- if a date cannot be determined based on point a) or b) above in the case of packaging imported from abroad, on the date of final unwrapping of the packaging.
The base of the product tax is the net weight of the product subject to tax and its rate differs by product type.