Ad tax set at 5.3% for revenue above HUF 100 mln

Banking

According to a new bill published on kormany.hu yesterday, the upper bracket of the advertisement tax would be 5.3%, while media companies with revenue of less than HUF 100 mln would not have to pay the advertisement tax.

German RTL Group company earlier filed a complaint to Brussels as its Hungarian subsidiary RTL Klub was the only media outlet that fell into the highest bracket, of the current progressive advertisement tax. The German group had said that the tax was meant as a way to pressure the station into better government news coverage – and that it put its Hungarian business in a "structurally loss-making position".

According to earlier reports, Cabinet Chief János Lázár negotiated with RTL management about lowering the ad tax, allegedly in exchange for better news coverage of the government, but the firm has denied this report.

Lázár noted earlier that the tax is expected to generate a revenue of HUF 7-8 bln this year.

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