Government backs cap on proposed internet tax
The government supports a proposed amendment submitted by the governing Fidesz party to cap the tax to be levied on internet traffic at HUF 700 a month, Economy Minister Mihály Varga confirmed in Parliament yesterday.
The tax would be payable not by subscribers but by telecom service providers, Varga said, noting that the four biggest telecom service providers in Hungary had profits of HUF 75 bln in 2013. The new internet tax was proposed as part of a bill detailing next year's taxes and submitted by the government to Parliament on October 21. Under the bill, the telecom tax, introduced two years earlier, would be extended to internet services.
The bill originally called for every gigabyte of data traffic over the internet to be taxed HUF 150, payable by internet service providers. Following criticism by opposition parties, trade unions and industry organisations – as well as a hastily arranged demonstrations by tens of thousands in Budast, Pécs and Miskolc – Fidesz' parliamentary group proposed a cap on the tax. Referring to the Sunday demonstration, in which the headquarters of his governing Fidesz party were vandalized, Varga said "violence is completely unacceptable".
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.