The public health product tax (NETA) was introduced in order to curb the consumption of foodstuffs that are not useful for public health, to promote healthy nutrition and to improve the financing of health services, in particular public health programs. Public health product tax is a single-phase consumption tax payable on the first domestic sale of various products containing sugar, salt and caffeine. The persons, organizations selling the products listed below for the first time in Hungary or importing these from abroad and using them as raw material or a component for the manufacturing of own products and selling the produced product in Hungary, have to pay public health product tax: soft drinks, energy drinks, pre-packed sugared products, salty snacks, food seasoning, flavoured beer, alcohol refreshments, marmalades, alcohol drinks. The tax base is the quantity of the taxable product in kilograms or litres.
Rate of public health product tax:
- Soft drinks Syrup: 240 HUF/litre
- Other soft drinks (juices): 15 HUF/litre
- Energy drinks: 300 HUF/litre or 50 HUF/litre
- Sugared cocoa powderr: 85 HUF/kg
- Other pre-packed sugared products: 160 HUF/kg
- Salted snacks: 300 HUF/kg
- Seasoning: 300 HUF/kg
- Flavoured beer and other alcohol refreshments: 25 HUF/litre
- Marmalade: 600 HUF/kg
- Spirituous beverages: 25 HUF/litre - 1,100 HUF/litre (increasing progressively in line with alcohol percentage volume).
NETA is not payable on pre-packed sugared products containing at least 20 percent of honey if their sugar content does not exceed 40 percent. Exemptions based on quantities, sales and procurement may relate to the product tax payment obligation. Return filing obligation must be fulfilled with the frequency (monthly, quarterly or annual) of value added tax return filing and until the deadlines prescribed for value added tax return filing relating to the given taxpayer. The taxable persons not having VAT return filing obligation must file returns until the 25th of the second month of the year following the tax year.