The government expects to collect an annual Ft 61 billion from the charge. Norwegian-owned Telenor will have to review planned investments in Hungary as a result, Nepszabadsag writes.

Other industry insiders expressed surprise at the size of the tax, as the general consensus was that it would be Ft 30 billion.

Magyar Telekom is expected to bear the brunt of the telecoms levy, around 50%, analysts said, although Orban did not say whether the tax would be based on revenues or profits. The company would not comment.

Magyar Telekom shares plunged 4% immediately after the announcement before recovering slightly.

It is not known whether the new tax will affect the company’s dividend policy, Napi Gazdasag writes. Based on current earnings and the new Ft 20-30 billion charge, the company could maintain its current dividend policy, the newspaper adds."

Source: Hungary Around the Clock.

This news item is one of many published daily by HATC, a premier subscription news service which distributes English-language info about Hungary via email or fax. For a free trial of HATC follow this link and click on 'Free Trial Subscription'.