Heavy Advertising Tax Approved By The Hungarian Parliament

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Lawmakers in Hungary have approved the introduction of taxes on revenues from media advertisements, which could jump to 40% for the biggest broadcasters.
Hungary Media, Telecoms, IT, Entertainment

Lawmakers in Hungary have approved the introduction of taxes on revenues from media advertisements, which could jump to 40% for the biggest broadcasters.


On June 11, 2014, The Hungarian Parliament passed a controversial tax on advertising which critics say represents an assault on media freedom in the country. The legislation, which had earlier been mooted but shelved by the ruling party in a previous session of Parliament, was rushed through the house in a fast-track procedure.


The levy would tax Hungarian media companies' annual advertising revenues progressively, at a maximum rate of 40 percent on revenues above HUF 20 billion (EUR 65 million). However, the tax exempts the first HUF 500 million (EUR 1.7 million) in advertising revenues.


Media companies have denounced the legislation, publishing blank newspaper pages and stopping broadcasts in protest. Civil society groups have warned new rules will put media freedom in jeopardy.


The lawmaker who submitted the proposal said that in the near future the government also aims to tax the ad revenues of Internet companies like Facebook, YouTube and Google.

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