OBJECTIVES: Taxing unhealthy goods could generate resources for healthcare and raise health awareness. We assessed the Hungarian public health product tax (PHPT), introduced in September 2011 to reduce unhealthy food consumption, promote healthy eating, and improve healthcare reimbursement. Taxpayers are the first domestic sellers/importers of various taxable products. The rate is in Hungarian Forint (HUF) per kilogram or liter, depending on the quantity of specific ingredients (salt, sugar, sweetener, saturated fat, methyl-xanthine etc.).

METHODS: A nationwide retrospective analysis was conducted using data from the Hungarian National Tax and Customs Administration and the National Institute of Health Insurance Fund Administration. The amount of taxable products (kilogram, liter) and income (HUF, GBP) were assessed between September 2011 and December 2023 with descriptive statistics and regression analysis.

RESULTS: The total revenue was 91.05 billion HUF (£207.33 million), which roughly equals the annual dental care public expenditures in 2023, and 3,79 times as much as it was in 2012 with an annual increase of £14.55 million. In 2023, largest proportion of income was from sweets (28.39%; £58.86 million), salty snacks (23.21%; £48.12 million) and soft drinks (19.40%; £40.22 million). Largest annual increases were observed in soft drinks (β=51.18 million liters), energy drinks (β=9.67 million liters) and sweets (β=6.98 million kg), while cocoa powder (β=-195.72 thousand kilograms) condiments (β=115.04 thousand kilograms) had somewhat decreased. Although alcoholic drinks have ceased to be taxable since July 2022, PHPT has been levied on other products (‘delicacies’, pre-packed sweet and savory pastry), as well as the above products containing sweetener.

CONCLUSIONS: PHPT is an effective tool for revenue generation. However, we were unable to examine the achievement of the goal of improving healthy eating. Our results may help improve the effectiveness of similar excise taxes internationally, provided that the primary objective of the excise tax is revenue generation.