EU To Take Hungary To Court Over Telecoms Tax
- 22 Mar 2012 8:00 AM
"The European Commission is expected to refer Hungary to the European Court of Justice on Thursday, as the country has failed to bring its telecoms tax into harmony with EU rules, according to reports. The European Commission in September urged Hungary to scrap the special tax on the telecommunications sector, introduced in 2010, arguing that it violated EU regulations.
The government has not responded to requests to adjust the law, instead declaring that it is ready to defend its position in court.
The Commission began an infringement procedure against Hungary over the issue in March. EU rules state that any taxes on the sector must be earmarked for the costs of regulating the sector.
The telecoms tax was expected to generate Ft 61 billion annually in 2010-12, or 0.2% of GDP.
Magyar Telekom paid the bulk of the tax and as a result was forced to cut its dividend payout to Ft 50 from Ft 70 per share, ecoline website reports."
Source: Hungary Around the Clock
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