Parliament approves advertisement tax

Banking

The Hungarian Parliament approved the controversial tax on advertisement revenues Wednesday, despite protests from media on all sides of the political spectrum, as well as two demonstrations outside the Parliament building last week.

Parliament approved the tax bill in a fast-track procedure, which limits debate time, with 144 votes in favor and 30 against. A late amendment says that this year's advertising tax bill can be reduced by 50% for media firms reporting losses from earlier years, in corporate tax or personal income tax. Opposition parties said the amendment clearly favors television broadcaster TV2, which is said to be friendly to the ruling party, Fidesz.

The graduated tax applies to media companies, publishers, outdoor advertisement firms and online advertisements. Media outlets making between HUF 500 mln and HUF 5 bln must pay 1% of all their advertising revenue in tax. Those in the highest bracket, with HUF 20 bln in advertising revenue, must pay 40% tax.

The law is to take effect in 31 days, following its publication, and affected companies will have to pay taxes after their revenues from this year on.

Hungary Account Deficit at EUR 561 mln in Q4 Debt

Hungary Account Deficit at EUR 561 mln in Q4

Moldovan Pensions to be Increased as of April 1 World

Moldovan Pensions to be Increased as of April 1

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic... Appointments

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic...

Hungarian Wine Marketing Agency to Host Summit Drinks

Hungarian Wine Marketing Agency to Host Summit

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.