BUDAPEST: Hungary is going for changing plans of its advertising tax saying the European Commission has concern about this particular legislation. Therefore to take the response of EU’s executive is important about such latest developments.
János Lázár, minister at the helm of the Prime Minister’s Office, announced on Tuesday evening that the cabinet was to modify the advertising tax, replacing the current progressive system with a flat-rate one. He said the cabinet has been receiving comments, both formal and informal, since last August about the EC having serious concerns about the advertising tax.
Portfolio turned to the EU executive for a comment on the latest developments. In its response the EC reminded that it had received a complaint last year about legislation on Hungary’s advertising tax, as a result of which it contacted Hungarian authorities and is scrutinizing the compatibility of the relevant legislation with EU rules.
It also noted that a pilot procedure has been launched by the Commission’s Taxation and Customs Union Directorate-General under which it sent a letter to the government on 21 August 2014, seeking basic information whether the advertising tax indirectly discriminates foreign-owned media companies or not.
The preliminary probe is still in progress. The Commission is analyzing the response by Hungarian authorities and further information is being gathered, the EC added.
It also noted that the legislation in question is also being examined from the aspects of state aid rules. It has not yet reached a formal position on this one, though.
The EC would not comment on the law modification planned by the Fidesz party.
