ADVERTISEMENT

Hungary urges ‘Google tax’ on internet firms

History

Hungary presented a proposal to levy a withholding tax on internet companies – such as Google, Facebook and Amazon – at an informal meeting of European Union finance ministers in Bratislava at the weekend, Hungarian news agency MTI reported today. The commonly cited “Google tax” has been mentioned several times by the Hungarian government lately.

“The initiative, similar to the American solution, involves levying a kind of withholding tax on payments that are obviously transferred to a foreign service provider for economic activity that takes place within the borders of another country,” Hungary’s Minister for National Economy Mihály Varga told the news agency on Saturday. Varga reiterated that international digital companies with operations in Hungary must share the public burden “like everybody else.”

The idea has not only been embraced by Hungary, but has recently also stirred the interest of other European countries. The Visegrád  Four countries – the Czech Republic, Slovakia, Poland and Hungary – were reported to be supportive of the measure at the meeting.

During the meeting, the assembled economy and finance ministers also discussed possibilities for deepening Europe’s monetary union. “We agree with this, to a point,” MTI reported Varga as saying. “If the European Union is looking to its future, then it must strengthen cooperation in the economic form. It must return to its origins, to the strengthening of the economic community. We agree on this notion, but not on a fiscal union.”

ADVERTISEMENT

Regional income disparities remain pronounced Analysis

Regional income disparities remain pronounced

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.