EU Abandons Telecoms Tax Challenge Against Hungary

  • 24 Jul 2013 9:00 AM
EU Abandons Telecoms Tax Challenge Against Hungary
The European Commission has withdrawn its appeal before the European Court of Justice against Hungary and Spain regarding special taxes on the telecoms sector, it was announced yesterday. The Commission considered the taxes to be incompatible with EU rules that require sector-specific taxes to be reinvested in the sector.

However, the Luxembourg-based court recently ruled that similar legislation in France is compatible with EU regulations.

The Commission decided to drop its legal actions against Spain and Hungary on July 18, as it had planned to use the same arguments as against France.

In the event of an adverse ruling, the government would have had to pay back the entire amount of telecoms tax collected from companies since 2010, or Ft 150 billion.

Source: Hungary Around the Clock

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