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Economy Ministry withdraws internet tax, for now

Banking

The Economy Ministry said Friday afternoon that it had initiated the withdrawal of the proposed internet tax with the chairman of Parliament's economy committee, MTI news agency reported. The announcement came after Prime Minister Viktor Orbán said on public radio Friday morning that the tax on internet traffic "cannot be introduced in its current form".

The government will launch a national consultation about the internet in mid-January, the ministry added. Orbán also promised national consultations on the matter, and said "it is necessary to find where the huge profit from internet services goes and whether parts of it could be kept in Hungary and channeled into the budget." The proposed new tax, introduced as part of next year's tax bill was sharply criticized by professional bodies, telecoms as well as by the opposition, and provoked big demonstrations in Budapest and several big cities. 

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