Hungary Backs Down on Internet Tax

November 3, 2014 Taxation in Hungary

BUDAPEST – After intense public outcry and protesting, the government of Hungary has backed down on its decision to implement a tax on internet usage.

Late last week the Prime Minister of Hungary Viktor Orban announced that the government will now drop the proposal to enact a new tax on internet-usage in the country.

The internet-tax was first proposed earlier last month, and was planned to be charged at HUF 150 per gigabyte of internet usage.

The tax was met with immediate opposition from internet providers and taxpayers, with a significant number of people taking to the streets to openly protest the proposal.

In response to the protests, the government indicated that a maximum payment threshold should be set for the tax, with a HUF 700 per month cap for individuals, and a 5 000 per month for companies, however, the offer of a cap did not quell protestors, who, by October 31st numbered in the tens of thousands.

The Prime Minister indicated that the tax may be proposed again in the future, once it has been reassessed and re-structured, however, no indication was given on when the government would look at the measure again.

Photo By: Ministerio TIC Colombia