Fidesz introduces once opposed internet tax


National Economy Minister Mihály Varga today revealed the details of the taxation system of 2015 today, hinting that the New Year would see the introduction of levying taxes on internet service providers: 4.5-6% after their revenues and not profits. Hungarian economics online daily, however, said today, that in 2008 Fidesz protested against the then-governing Socialist party MSZP, when their MP suggested levying a tax of 0.8% on internet service providers.

HVG notes, that on Fidesz’s official website the petition is still available for eager readers, saying that “levying a tax on internet is not only thoughtless, but clearly unnecessary and bad, as it further deepens the digital gap, excluding users from internet.”

Besides internet tax, Hungary will keep its commitment to introduce special taxes, according to Varga. The minister added that the recently introduced online cash registers would also be extended to other sectors as well to whiten Hungary’s economy further, which Varga kept regurgitating during his speech.

Varga promised to tax consumption more, while keeping labor taxes low. For supporting labor, the Minister promised to continue the “job protection program” expanding the facility for part time workers as well.  Corporations, who decide to financially support higher education would be bound to pay lower taxes.

Although when re-elected, Hungary’s Prime Minister Viktor Orbán promised to lower the personal income tax to a one digit number soon, Varga now said that meeting such objective would wait until the end of their governing term.

Value added tax would stay at 27%, but the Vat rate on pork and on intermediate products - beef, sheep and goat meat - will also be lowered to 5%.

Furthermore, the minister argued that there is no fundamental reason for modifying the currently existing tax policy, especially referring to special taxes, thus Varga promised that the taxes involving advertising and the banking sector will stay. He also said, that the government is eyeing with  the extension of the special taxes to the telecoms sector, listing Magyar Telekom to be subject of the new levy.


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