HVG: Tax may drive TV2 production abroad

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Commercial channel TV2, which has Fidesz-friendly ownership, is considering relocating its production abroad, in order to avoid the burden that the progressive advertisement tax is posing on the channel, Hungarian online daily HVG reported today.

The tax on advertisement revenues was adopted on June 11, and is widely believed to target commercial TV channel RTL Klub, which is critical of the ruling Fidesz party and sits alone in the top tax bracket.

Nonetheless, TV2 was also affected by the ad tax, even if the pro-government station is in a lower tax bracket, HVG reports.

According to HVG, the Hungarian government has been seeking to support TV2 by giving the channel government advertising contracts, and letting the company collect money via fees from cable service providers. 

But, according to reports, TV2 has been forbidden from charging fees to cable providers as it may be in conflict with EU regulations.

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