Hungary Plans to Significantly Reduce Media Tax
Hungary's government appears to be planning a significant reduction in the controversial special tax on the media.
The chief of staff for Prime Minister Viktor Orban announced that the government would propose a reduction at a meeting of the governing parties on Wednesday. Janos Lazar, the minister in charge of Orban’s office, hinted in an interview with the MTI news agency on Tuesday that a 5 percent tax could be introduced. Currently, the maximum possible tax on advertising revenue is 50 percent.
Currently, RTL Klub—the country’s largest private media group—is the only entity required to pay the highest tax rate. The company is majority-owned by German interests. RTL’s news channel frequently airs critical reports about the Hungarian government.
The special tax was passed in June of last year by the Hungarian Parliament, which is dominated by right-wing conservatives. RTL filed a complaint with the European Commission in the fall, denouncing the tax as discriminatory and a threat to press freedom.
Lazar said that Budapest had recently received a letter from Brussels. According to him, the Commission expressed its concern about the tax in the letter. RTL stated that if the special tax were indeed reduced, it would be a «positive and important signal.» The broadcaster assured, however, that it would «continue its independent news coverage» in any case. (SDA)
