Hungary Plans New Tax on Internet Traffic
Hungary plans to impose a new tax on Internet data transfers, a draft 2015 tax bill submitted to parliament late on Tuesday showed, in a move that could hit Internet and telecoms providers and their customers hard.
The draft tax code contains a provision for Internet providers to pay a tax of 150 forints (60 US cents) per gigabyte of data traffic, though it would also let companies offset corporate income tax against the new levy.
Within hours of the tax provision being published over 100,000 people joined a Facebook group protesting the levy, which they fear providers will pass on to them. Thousands said they would rally against the tax, which they said was excessive, outside the Economy Ministry on Sunday.
Prime Minister Viktor Orban's government has in the last few years imposed special taxes on the banking, retail and energy sectors as well as on telecommunications providers to keep the budget deficit in check, jeopardizing profits in some sectors of the economy and unnerving international investors.