Hungary’s Ad Tax Exemption Threshold Still Too High For Brussels
- 19 May 2015 9:00 AM
The European Commission believes the proposed 100 million forints (EUR 325,000) exemption threshold for the advertising tax is still too high. The government is in talks with Brussels on the matter, Economy Minister Mihály Varga told commercial television ATV. The government has proposed making the ad tax rate a flat 5.3%, but allowing an exemption on a tax base up to 100 million forints.
It proposed changing the multi-bracket tax rate after German-owned broadcaster RTL complained that it was the only taxable party to pay the top rate.
The advertising tax is set to bring in 10.9 billion forints of revenue next year, according to the government’s 2016 budget bill, compared to 6.6 billion forints in 2015.
Varga acknowledged a difference in opinions between his ministry and the National Bank of Hungary on “some details” of boosting lending activity, but said the two see eye to eye on “strategic questions”.
NBH officials earlier suggested that a planned reduction in the bank levy next year should be linked directly to individual banks’ increased lending activity, but the government’s bill on the change contained no such conditions.
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