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Image header Agence Europe
Europe Daily Bulletin No. 10463
Contents Publication in full By article 22 / 41
GENERAL NEWS / (ae) eu/digital

Hungary requested to end “telecoms” tax

Brussels, 29/09/2011 (Agence Europe) - The European Commission sent Hungary a reasoned opinion on Thursday 29 September, calling on it to abolish the “telecoms” tax which is in contravention of telecommunications rules. This tax, which was introduced in October 2010, is levied on telecoms operators' turnover but is not used to cover the administrative and regulatory costs as provided for in the rules. Revenue goes straight into the Government's central budget, which is totally illegal, according to Jonathan Todd, the spokesman for Digital Strategy Commissioner Neelie Kroes. Moreover, Hungary has failed to comply with the obligation to consult interested parties in an appropriate manner on any amendments of charges applied to telecoms operators. The rate of the tax varies between 0% and 6.5%, on the basis of gross revenues (excluding VAT). The formal notice, the first stage of the EU infringement procedure sent by the Commission to Hungary on 30 September 2010, asking it to abolish the telecoms tax went unheeded. Hungary now has two months to respond to Commission calls. If it fails to do so, the Commission may refer Hungary to the EU Court of Justice. In March 2011, the Commission referred Spain and France to the Court of Justice for levying similar charges on telecom operators in breach of EU telecoms rules (see EUROPE 10336). (IL/transl.rt)

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