Economy
Hungarian gov't could propose 5-10% advertising tax rate - Lázár
The cabinet could propose a 5-10% rate for the advertising tax, János Lázár told journalists in Parliament on Tuesday after the economic committee discussed how the levy should be changed, local televisions ATV and HírTV reported.
He added that the highest rate in the European Union is 5%. The European Commission said the level of the tax must be affordable and if it is progressive, there cannot be a disproportionate difference between the brackets, he said.
Lázár told Parliament’s economic committee on Tuesday that an amendment proposal to the advertising tax could be submitted by the government by the end of this month. He also reminded that two European Commission directorates (tax and competition) are currently investigating the advertising tax, and that is why it needs to be changed. At the same time, Lázár underlined that the EU executive did not contest the existence of the tax and its objections were primarily methodological and technical in nature.
Lázár did not mention any specific rate at the meeting. András Tállai, state secretary at the Economy Ministry, highlighted that the revenue target from the advertising tax is HUF 6.6 billion, which the budget needs therefore the cabinet should find a solution to make sure this goal is met.
Antal Rogán, head of the parliamentary group of the ruling Fidesz party and Chairman of the committee, talked about a 3-5% tax rate, adding that they can debate about the details of the legislation, but the need for the tax cannot be questioned.
János Volner of the far-right Jobbik party underlined that the advertising tax could monopolise mass media and also shows that the government clashes with the EC only on the basis of its own power interests.
László Varju, independent MP and a politician in the Democratic Coalition (DK), said the cabinet is using this special levy to selectively put companies and sectors into a difficult situation. He said the tax should not be modified rather abolished because it causes hardships for smaller businesses.
Csaba Tóth of the opposition Socialist Party (MSZP) said the revenue expected from the advertising tax does not have such a weight that losing it would upset the budget. He added that even a 5% rate would be too much for small companies, and that they could respond to this burden by laying off staff and raising prices.
Ágnes Kunhalmi (MSZP), Vice-President of the cultural committee, is of the view that the advertising tax should be eliminated because it is just another tool “in the machinery oppressing the media".
Independent PM Tímea Szabó, a politician in PM, stressed that there can be no economic argument in favour of a HUF 6 bn budget revenue item while the cabinet spends HUF 80 bn on the public media annually. The advertising tax has a political agenda and PM objects even to a 5% rate because it will “stifle" most media companies.
He added that the highest rate in the European Union is 5%. The European Commission said the level of the tax must be affordable and if it is progressive, there cannot be a disproportionate difference between the brackets, he said.
Lázár told Parliament’s economic committee on Tuesday that an amendment proposal to the advertising tax could be submitted by the government by the end of this month. He also reminded that two European Commission directorates (tax and competition) are currently investigating the advertising tax, and that is why it needs to be changed. At the same time, Lázár underlined that the EU executive did not contest the existence of the tax and its objections were primarily methodological and technical in nature.
Lázár did not mention any specific rate at the meeting. András Tállai, state secretary at the Economy Ministry, highlighted that the revenue target from the advertising tax is HUF 6.6 billion, which the budget needs therefore the cabinet should find a solution to make sure this goal is met.
Antal Rogán, head of the parliamentary group of the ruling Fidesz party and Chairman of the committee, talked about a 3-5% tax rate, adding that they can debate about the details of the legislation, but the need for the tax cannot be questioned.
János Volner of the far-right Jobbik party underlined that the advertising tax could monopolise mass media and also shows that the government clashes with the EC only on the basis of its own power interests.
László Varju, independent MP and a politician in the Democratic Coalition (DK), said the cabinet is using this special levy to selectively put companies and sectors into a difficult situation. He said the tax should not be modified rather abolished because it causes hardships for smaller businesses.
Csaba Tóth of the opposition Socialist Party (MSZP) said the revenue expected from the advertising tax does not have such a weight that losing it would upset the budget. He added that even a 5% rate would be too much for small companies, and that they could respond to this burden by laying off staff and raising prices.
Ágnes Kunhalmi (MSZP), Vice-President of the cultural committee, is of the view that the advertising tax should be eliminated because it is just another tool “in the machinery oppressing the media".
Independent PM Tímea Szabó, a politician in PM, stressed that there can be no economic argument in favour of a HUF 6 bn budget revenue item while the cabinet spends HUF 80 bn on the public media annually. The advertising tax has a political agenda and PM objects even to a 5% rate because it will “stifle" most media companies.
