Brussels, 14/03/2011 (Agence Europe) - The European Commission has decided to bring France and Spain before the Court of Justice over the telecoms taxes they continue to charge, but should not, despite a reasoned opinion sent on 30 September 2010 (EUROPE 10227). The Commission has also opened proceedings against Hungary over another tax of the same type.
“Telecoms taxes” are specific taxes on the turnover of telecommunications operators, set in place after the decision to remove paid advertising from public television channels, in order to compensate for lost income. However, these are incompatible with European telecoms rules. Under these rules, taxes chargeable to operators in the sector are supposed to cover only certain administrative and regulatory costs, which are fundamentally connected to the authorisation regimes and costs of regulating the sector. They must also be objective, transparent and proportionate. In France, the tax was brought in in March 2009 at a level of 0.9% of the total income of the operators authorised to provide services in France, exceeding €5 million. This tax, which is paid to the French State, is expected to bring in an annual 400 million euro. In Spain, a new law on the funding of the Spanish public broadcasting organisation, RTVE, entered into force in September 2009. It brings in a tax of 0.9% gross revenue of telecoms operators, which is also designed to offset the loss of revenue from advertising. This tax, which entered into force in October 2010, is expected to earn the Spanish state €230 million a year.
The Commission has also opened proceedings against Hungary over a similar issue (formal notice). In October 2010, Budapest brought in a special tax targeting three sectors of the economy: retail trade, electronic communications and energy. The base and rate of this tax is defined individually depending on the sector of activity and revenue. For telecoms operators, rates vary between 0 and 6.5%, on the basis of gross revenue (before VAT), which is expected to bring the Hungarian government some €220 million a year. In light of information provided by the Hungarian authorities, the Commission is concerned that this tax is designed to cover costs other than administrative and regulatory costs related to the telecoms sector and that it is, therefore, incompatible with European rules in the matter. The expiry date of the “special tax” in 2010 was set for the month of December and the operators have already paid it. Hungary now has two months to respond to the Commission's request for information. The Commission is also still analysing the application of the “special tax” to the retail trade and energy sectors. (I.L./transl.fl)