Advertising tax shocks the country's TV channels

Banking

Both the greatest Hungarian TV channels, RTL Klub and TV2, have expressed their strong objections against the possible introduction of advertisement tax bill. RTL Klub “was shocked” while TV2 has warned about the possible “unforeseeable consequences” for media companies and the television sector of Hungary.

L. Simon László, MP of the Hungarian governing Fidesz party, submitted a bill regulating advertisement tax on Monday. This would be the first economic policy measure of the new cabinet appointed by Hungarian Prime Minister Viktor Orbán. The tax regulated by the bill is to be paid after the revenues and not the profit. If the bill is approved, the first payment would be due by August 20.

According to TV2, the bill proposal is unacceptable and inquired its dispelling by Fidesz. "We find it especially unsettling that the bill submitted today [June 2] would place even larger burdens on the players of the media market than previous plans," TV2 said. TV2 added that the bill would strip the entirely Hungarian-owned channel and could possibly terminate such popular programs as “Tények”, “Mokka”, “Napló” and “Aktív”, even threatening soap operah “Jóban Rosszban”. RTL Klub said the bill is a “brutal attempt by the government to incapacitate the largest medium of the country”. The channel considered the bill to be unnecessary, as its impact on the state budget would be minimal. The channel said that in spite of having been profitable for the last couple of last years, the new tax would push the channel into losses. RTL Klub emphasized that the size of the levy and its way of introduction is unprecedented in any democratic country.

ADVERTISEMENT

Job ads in hospitality, tourism sector grow drastically  Analysis

Job ads in hospitality, tourism sector grow drastically 

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.