The European Commission (EC) has launched infringement proceedings against Hungary over a controversial telecoms tax it introduced last October.
According to Portfolio, the Commission believes the tax is incompatible with EU telecoms rules and has given Hungary two months to reply to a request taking the form of a ‘letter of formal notice’.
The tax, which varies from 0-6.5% depending on gross revenues, excluding VAT, is expected to generate the Hungarian government around €220 million a year.
The EC is taking similar action on France and Spain, which have also imposed ‘telecoms taxes’, in both instances following the end of paid advertising on public TV.
The EC is already in dispute with Hungary over the latter’s controversial new media law.