ADVERTISEMENT

Ad tax hike could undermine media, says association

Banking

The Hungarian Advertising Association (MRSZ) has called on the government to drop plans to raise advertising tax from the current 5.3% to 7.5%, arguing that the move could undermine media outlets, according to Hungarian online news portal index.hu.

MRSZ Chairman Zsolt Urbán emphasized that the planned ad tax is against the interests of the Hungarian economy, according to reports.

The association put out a statement a day after Lajos Kósa, the Fidesz parliamentary group leader, said the government plans to raise the levy. Kósa said the tax could remain in place for “about four years” until it generates enough to cover refunds the state must pay because the European Commission deemed the tax discriminatory in an earlier form, Hungarian news agency MTI reported.

The Fidesz government has been playing with the idea of modifying the ad tax recently; however, communication on the issue has been mixed. In April, Kósa was reported to have said Hungary would not introduce a mooted 9% advertising tax - almost double the current measure - in 2018, adding instead that “we would like to cut the advertising tax,” Hungarian wire service MTI reported earlier.

The MRSZ previously also cried foul about the announced plans for doubling the measure.

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.