CJEU advisor says Hungary ad tax complies with EU rules
frantic00 / Shutterstock.com
A top adviser of the Court of Justice of the European Union (CJEU) on Thursday said Hungaryʼs progressive advertising tax does not violate EU rules on state aid, state news wire MTI reports.
Image by frantic00 / Shutterstock.com
Advocate General Juliane Kokott said in an opinion that state aid rules do not preclude taxation of turnover of businesses at a progressive rate and proposed the CJEU dismiss an appeal by the European Commission against a ruling by the General Court finding no evidence of selective advantage in the tax regime.
The Hungarian ad tax is paid on net turnover. It is set at 0% for a tax base under HUF 100 million and at 5.3% over that threshold.
The EC has argued that the tax grants smaller businesses, which are "taxed at too low a level", an impermissible advantage and thus constitutes state aid.
The advocate general drew the same conclusion for an ad tax in Poland that the EC has also contested.
The opinion does not bind the court.
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.