In the last 10 years, Hungary has become one of Europe’s most intrusive regulators of personal lifestyle choices, unless those choices involve alcohol.
According to the latest Nanny State Index, Hungary is once again among the top-ranking countries in Europe for regulatory overreach. The country leads the continent in restrictions on food and soft drinks, ranks second in anti-smoking measures, and holds third place for policies on safer nicotine alternatives.
At the heart of Hungary’s approach is the Public Health Product Tax, colloquially known as the ”chips tax,” which was first introduced in 2011. Today, it remains the most comprehensive system of food and beverage taxation in Europe.
The levy targets a wide range of products — from sweets and pasta to sugary drinks and energy beverages — and can add significant costs for consumers. For example, jam is taxed at 780 Forints (€2.04) per kilogram, and salty snacks face a 390 Forint (€1.02) levy per kilogram. Artificially sweetened products are also taxed.
Next in the firing line could be energy drinks, with a proposed ban on sales to those under 18 likely to take effect in 2025. There is also speculation that the sale of such drinks may soon be restricted to state-licensed outlets, following a pattern already established for tobacco and e-cigarettes.
Hungary has arguably the harshest regulations on vaping in the European Union. Since March 2020, tax rates on vape juice have fluctuated but continue to climb, reaching 36 Forints (€0.90) per milliliter in January 2025. The country also imposes a staggering €309 per kilogram tax on heated tobacco, the highest in the EU when adjusted for affordability.
Tobacco users fare no better. A near-total advertising ban, state-controlled retail, vending machine bans, and plain packaging laws introduced in 2022 leave little room for market competition or consumer choice. Smoking is banned not only indoors but in many outdoor areas as well. Licenses to sell tobacco and e-cigarettes are tightly controlled.
Meanwhile, e-cigarette advertising is entirely banned, and vaping is only permitted in areas where smoking is allowed — unless the device is prescribed by a physician, which is virtually unheard of in practice.
The curious exception of alcohol
The one curious exception to Hungary’s otherwise strict health regime is alcohol. While tax rates on spirits and beer are higher than average when adjusted for income, still wine remains untaxed, alcohol advertising is largely unrestricted, and there is no mandated closing time for bars.
