Report: EU satisfied with ad tax change

Banking

Due to the European Commission’s relative satisfaction with the changes made by the Hungarian Parliament to the country’s advertising tax, its review of the tax could be completed shortly, Hungarian daily Népszabadság reported today.

On Wednesday, Hungarian MPs approved a bill lowering the progressive tax rate from 50% to 5.3%, on a tax base over HUF 100 mln.

German-owned RTL Group previously complained to the EU that its business in Hungary was the only one in the top bracket, putting it in a “structurally loss-making position.”

The changes were drafted "in the interest of closing a legal dispute, while weighing the possible consequences of protracted litigation", according to the justification of the bill approved by MPs.

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