DEVELOPMENT OF THE PUBLIC HEALTH PRODUCT TAX IN HUNGARY BETWEEN 2011-2015

Author(s)

Csákvári T1, Endrei D2, Boncz I2
1University of Pécs, Zalaegerszeg, Hungary, 2University of Pécs, Pécs, Hungary

OBJECTIVES:  Several countries has been already established taxes placed upon unhealthy foods and beverages, to increase health awareness. Hungary’s public health product tax (’fat tax’) has been established in 2011, and its entire amount is a revenue source of the National Health Insurance Fund (NHIF). The aim of our study is to introduce Hungary’s public health product tax and reviewing the amount of tax received between 2011-2015 grouped according to taxable products. METHODS:  A quantitative, retrospective study was carried out to assess the products that have public health tax placed on to. Amount of tax bases (units in liter or kilogram) and amount of tax income (USD) was determined between 2011 and 2015. Data derived from the National Tax and Customs Administration of Hungary. RESULTS:  Both amount of income and number of taxable products increased over the years. Amount of public health tax income increased by 51% since 2012, due to the Act’s extension to alcoholic beverages in 2015. Most of all income came from prepacked sweetened products (34.24%, ~34,756,809.8 USD) and alcoholic beverages (28.09%, ~28,512,272.9 USD) in 2015. Prepacked sweetened products (72.49%) and salty snacks (13.31%, 12,288,313.89 USD) were the biggesttax bases (in kilogram). Soft drinks was the main product in tax bases (in liter) (81.04%), although only 15.78% of income can be linked to this item. Alcoholic beverages with 35-45% v/v had the greatest income (49.21% of income from alcoholic beverages, 13.82% of all income, ~14,031,990.27 USD), hovewer this means only 1,66% of all tax bases (in liter). CONCLUSIONS: Public health product tax’s primary goal was to become a small, but stabile source of revenue for the NHIF. It can also be a significant factor from a public health perspective. It is important to assess its affect on population’s health awareness in the future.

Conference/Value in Health Info

2017-05, ISPOR 2017, Boston, MA, USA

Value in Health, Vol. 20, No. 5 (May 2017)

Code

PHP113

Topic

Economic Evaluation, Health Service Delivery & Process of Care

Topic Subcategory

Cost/Cost of Illness/Resource Use Studies, Health Care Research

Disease

Multiple Diseases

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