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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