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Brussels proposing excise tax hike on fuels, government seeks derogation

The European Commission has proposed raising excise tax on fuel, according to business daily Vilaggazdasag, adding that Hungary is seeking an exemption until end-2023 from the obligation.

If the EC refuses Hungary’s request, the tax for petrol would rise from the current 0.28 euros per liter to 0.6 euros, and for diesel from 0.26 to 0.33 euros, resulting in a tax rise of 32.5 forints, based on the official exchange rate on Oct. 3, the paper said.

The EC made the related request on July 8, but considering the war and the energy crisis, it then offered member states a 6-month opt-out. Portugal and Sweden have secured a derogation until the end of the year.

The paper said it was possible the EC would only grant Hungary a suspension of a maximum of six months.

The government has said a longer period is necessary owing to the unfavorable forint exchange rate in October, among other reasons.

A derogation must be considered within three months of receipt of all the related information.

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