Industry Associations In Hungary Call For Further Consultations On Ad Tax
- 7 May 2015 9:00 AM
Industry associations continue to call for consultations on the tax on advertisements, asking the government to consider abolishing the tax due to its detrimental effect on the economy, the Hungarian Advertising Association said. In consent with another nine organisations, the association said the planned amendment to the ad tax would curb growth opportunities for micro- and small businesses and place them at a disadvantage compared to large companies and global operators.
The proposed 0% tax rate would only provide an exemption for companies with advertising revenue of up to 100 million forints, while all companies with higher revenue would have to pay a 5.3% tax.
The association reiterated its view that the introduction of the single band tax would increase consumer prices and thereby inflation, lead to lay-offs and deepen the competitive disadvantage against global operators.
The Hungarian Advertising Association will submit its comments concerning the draft amendment by May 9 and plans to soon submit its comments to the European Commission regarding the probe launched into Hungary’s ad tax, the association said.
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