HUNGARIAN TOBACCO RETAILERS ALLIANCE: IF THE GOVERNMENT DECIDES TO TERMINATE ALL TOBACCO RETAIL CONCESSION AGREEMENTS, IT WOULD AFFECT 5,000 HUNGARIAN-OWNED SHOPS AND 20,000 HUNGARIAN EMPLOYEES<\/p>\n\n\n\n
From the press:<\/p>\n\n\n\n
During a press conference on 3 September 2026, Hungarian Prime Minister P\u00e9ter Magyar shared statements about the planned actions of the Government regarding the tobacco retail sector. He emphasized that the decision is not finalised, the Government will decide in the following two weeks. However, he pointed out two possible points on the agenda: the termination of all tobacco retail licenses and the dissolution of SZTFH, the supervisory authority of the tobacco sector.<\/em><\/p>\n\n\n\n The Prime Minister said he believes it is important to take public health considerations into account and to ensure that state tax revenues increase as a result. He stated that the additional funds generated from this source would be allocated to the healthcare sector.<\/em><\/p>\n\n\n\n P\u00e9ter Magyar stated in response to a journalist’s question that the government’s goal in reviewing the concessions is to avoid incurring additional costs for the state while generating more revenue and improving services. With regards to the statements of the Prime Minister, the Hungarian Tobacco Retailers Alliance issued the following statement.<\/p>\n\n\n\n Prime Minister P\u00e9ter Magyar\u2019s announcement concerning tobacco retail concessions has raised more questions than it has answered regarding the proposed measures. As the representative advocacy organisation of the tobacco retail sector, the Hungarian Tobacco Retailers Alliance (MDKSZ), mindful of the future of approximately 20,000 employees working in tobacco retail and more than 3,000 businesses, wishes to set out the following statement.<\/p>\n\n\n\n HUNGARIAN TOBACCO RETAILERS ALLIANCE: IF THE GOVERNMENT DECIDES TO TERMINATE ALL TOBACCO RETAIL CONCESSION AGREEMENTS, IT WOULD AFFECT 5,000 HUNGARIAN-OWNED […]<\/p>\n","protected":false},"author":1,"featured_media":1000,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/posts\/1006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/comments?post=1006"}],"version-history":[{"count":1,"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/posts\/1006\/revisions"}],"predecessor-version":[{"id":1007,"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/posts\/1006\/revisions\/1007"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/media\/1000"}],"wp:attachment":[{"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/media?parent=1006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/categories?post=1006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mdksz.hu\/index.php\/wp-json\/wp\/v2\/tags?post=1006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
There are no plans to abolish the tobacco shop system, Magyar said. The government aims to limit the number of locations where tobacco can be purchased. Regarding the concession licenses, we primarily mean the termination of all of them – he added. Decisions regarding the details of the restructuring have not yet been made, but it is certain that a fairer system will follow. Personally, P\u00e9ter Magyar would support a more radical solution, though he added that this might not necessarily be the approach adopted. „I would nationalize the whole thing” he said, noting that such a measure would not be unprecedented in Europe.<\/em><\/p>\n\n\n\n
We agree that the controversies affecting tobacco retail must be investigated and remedied. An exceptionally strict system of sanctions has already been in place for tobacco shops that violate the law or breach their concession agreements, and this system must continue to be applied in the future. However, we express our deepest concern if the Government were to decide to collectively stigmatise the 5,000 tobacco shops operating in Hungary and our 20,000 colleagues employed by them, label them as lawbreakers and, ultimately, deprive them of their livelihoods. We support a comprehensive review of the tobacco concession system, as well as the identification and rectification of any irregularities. However, in accordance with the rule of law, we consider this feasible only if the process is conducted transparently, on a case-by-case basis, according to uniform, consistently applied criteria known in advance, rather than through collective measures.<\/p>\n\n\n\n
Due consideration must also be given to ensuring that the approximately 2.2 million Hungarian citizens who identify themselves as regular smokers continue to have lawful access to the tobacco products they seek. The closure of currently operating tobacco shops would create serious uncertainty of supply, which would almost certainly drive many consumers towards black-market sources or online purchasing. The dismantling of the established retail network could also mean that consumers would have to make substantial detours or travel to another town to purchase tobacco products, potentially giving rise to widespread dissatisfaction.<\/p>\n\n\n\n
We consider it important to emphasise that tobacco retail does not involve, and has never involved, any public funds. Tobacco retailers have merely been granted the right by the State to sell tobacco products, in return for which they pay a regular fee. Every tobacco retailer has selected the location, fitted out the premises, stocked the shop, employed staff and covered all related costs using their own funds and at their own risk, and continues to do so. Nevertheless, tobacco shops make a highly significant contribution to the State budget: approximately 73% of the retail price of every tobacco product sold consists of taxes, including excise duty and value added tax. The remaining amount is divided among the retailer, wholesaler, manufacturer and tobacco grower. By law, the tobacco retailer\u2019s profit margin is set at 10%. In addition to the taxes incorporated into the price of tobacco products, tobacco shop operators pay a concession fee to the State, as well as all applicable local and business taxes. Any profits they earn are not transferred abroad but are invested or spent in Hungary.<\/p>\n\n\n\n
Over the past 13 years, tobacco retailers have invested a great deal of work, time and money in their businesses, from shops serving the smallest communities to high-volume retail outlets. Recent investments and improvements, including those completed this year, were undertaken in reliance on citizens\u2019 legitimate expectation that the legal system would operate predictably and that long-term legal relationships would be respected. The investment decisions were based on the anticipated period of return. Moreover, many currently operating businesses were already running tobacco shops before the present tobacco retail system was introduced. They are now concerned that the fruits of a lifetime of honest work may be put at risk.<\/p>\n\n\n\n
We agree with the Prime Minister\u2019s position that restricting access to tobacco products and other nicotine products, and ensuring that they are sold within a strictly regulated, closed system, is the most effective means of protecting non-smokers\u2014and minors in particular\u2014from the harmful effects of these products. Numerous international examples from across the European Union demonstrate that a state-licensed tobacco retail system is the most suitable framework for achieving this objective. We believe that this system should be strengthened, its benefits preserved and any shortcomings corrected.<\/p>\n\n\n\n
We are open to constructive consultations concerning the review of the system. We respectfully request that the Government involve the Hungarian Tobacco Retailers Alliance, in its capacity as the sector\u2019s representative advocacy organisation, in the public consultation process concerning any restructuring of the tobacco retail system.<\/p>\n\n\n\n
At the earlier request of Minister D\u00e1vid Vit\u00e9zy, we previously submitted our detailed position paper concerning the tobacco retail system, and we are now also publishing it on our website. We respectfully ask decision-makers to consider our arguments and to provide an opportunity for a meeting, professional dialogue and consultation.<\/p>\n","protected":false},"excerpt":{"rendered":"