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60 cents per gigabyte Internet tax proposed in Hungary

2014-10-23 09:48 by


Hungary is reportedly planning to impose a new tax on internet traffic from the beginning of 2015. Two days ago, the government submitted the tax bill for 2015 to the Parliament. It has to decide whether to approve the new tax or not. If the bill passes, it is expected the tax to generate annual revenue of 20 billion forints ($65m) which is 150 forints for every gigabyte of traffic passing through an ISP's servers or 60 cents per gigabyte.

Opposers to the tax have set up a Facebook group, which was joined by more than 100,000 people. Internet service providers and telecom companies have also opposed the bill. A protest is scheduled on Sunday, in Budapest, with 24,000 people already signing up to attend on Facebook.

According to analysts at Equilor Securities, the country's largest telecommunications company Magyar Telekom will have to pay 10 billion forint ($32.5m) a year if this bill does not come with a cap.  The company also opposed the bill, saying it should be rejected as it affects service providers, individuals, companies and the public sector.

Currently, hungarians pay tax on phone calls and text messages, but the maxiumum amount paid is capped. The cap for individuals is 700 forints ($2.27) per month, and for companies it is 5,000 forints ($16.26) per month. 

Read the full Reuters story -here-


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