Hungarian Advertising Association urges dialog on tax
The Hungarian Advertising Association is calling for negotiations with the Hungarian government regarding planned changes to the advertising tax, the association announced today in a statement. The association believes there is a need for professional dialogue, however, its point of view is that the tax should be fully withdrawn.
“Imposing a tax on Hungarian media companies with low turnover, such as newspaper publishers, will challenge their very survival,” the statement says.
Hungary’s Cabinet Chief János Lázár told reporters yesterday that he will propose a reduction to the advertising tax at the ruling Fidesz party’s upcoming fraction meeting in Mezőkövesd. Reports say the plan to change the tax came from EC pressure, and is not contingent on RTL Klub reducing its criticism of the government.
According to the association, Lázár’s plans would not only affect media companies but traders, service providers, Hungarian producers and retail chains as well. This would result in price increases in the short term, increased inflation, the reduction of demand and the stifling of economic output, the association foresees.
Noting a study prepared by OECD in 2014 on the advertising tax, the association said it is clear that it will have negative consequences. Referring to neighboring Austria as an example, where a 5% flat tax is in effect, the association said that the number of media participants dropped by 17.5% after the introduction of that tax.
ADVERTISEMENT
Road Accidents With Injuries up Last Year
Parliament Negates Mandatory Membership in MOK
Magyar Suzuki to Start Dual Training Courses
Budapest Leaders Unveil Plans to Scale Back Traffic on Thoro...
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.
