Economy
Individual solution may be found for the problems of RTL in Hungary - Orbán
Orbán told 150 German small business representatives that although Hungarians do need the Germans, the government still has a particular relationship with the local subsidiary of Germany’s RTL Group, newspaper Handelsblatt reported. It seems the cabinet is specifically targeting RTL Klub with a new advertising tax payable on revenues (!), not profits, especially its highest rate, which has recently been raised to 50% from 40%. The group has turned to the European Court of Justice over the levy.
The bout with RTL has confused several German investors that started to ponder that Hungary may not be an ideal place to put their capital to use. These concerns of businesses is fuelled not only by the tax on media companies, which is especially hurtful to RTL, but also by the fact that there is hardly any profitable sector left which are not burdened by special levies.
The paper also mentions that Orbán is not afraid to backpedal. He can be flexible, as the case of a planned tax on online traffic, i.e. the ‘Internet tax’ shows. In that case he shelved the proposal in response to mass protests. Handelsbatt said the PM appears to be more in a more conciliatory spirit than before and, citing Orbán’s words, it said that sooner or later an individual solution for the problems of the media sector can be possible, just like in the case of energy and telecom companies.
Orbán added that “Bertelsmann and Hungary are in the same boat. It is in our interest as well that foreign companies make as much profit as possible, in the expectation of higher taxes."
The bout with RTL has confused several German investors that started to ponder that Hungary may not be an ideal place to put their capital to use. These concerns of businesses is fuelled not only by the tax on media companies, which is especially hurtful to RTL, but also by the fact that there is hardly any profitable sector left which are not burdened by special levies.
The paper also mentions that Orbán is not afraid to backpedal. He can be flexible, as the case of a planned tax on online traffic, i.e. the ‘Internet tax’ shows. In that case he shelved the proposal in response to mass protests. Handelsbatt said the PM appears to be more in a more conciliatory spirit than before and, citing Orbán’s words, it said that sooner or later an individual solution for the problems of the media sector can be possible, just like in the case of energy and telecom companies.
Orbán added that “Bertelsmann and Hungary are in the same boat. It is in our interest as well that foreign companies make as much profit as possible, in the expectation of higher taxes."
