Lázár says ad tax rate still undecided

Banking

Although Minister for National Economy Mihály Varga submitted a proposal to Parliament that would raise the advertising tax from 5.3% to 9% from June, Cabinet Chief János Lázár said Thursday that the ad tax rate is not yet set and will be determined during 2018 budget talks, according to reports.

Media associations have voiced concerns over the proposal almost doubling ad tax since the news broke, claiming that the raise could put some firms out of business, and could make it very difficult for media outlets operating without government advertising, according to reports.

During his regular weekly press conference, Lázár said the ad tax rate for 2018 is not yet set, but will be determined during budgetary and tax law talks relating to the 2018 budget, according to state news agency MTI.

Lázár said that companies previously paying the tax could expect to receive more than HUF 20 billion of reimbursements, while for the first months of 2017, owing to the 0% rate in the first half of the year, they will be exempt from paying HUF 1.3 bln of taxes, MTI added.

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