RTL is planning to contest Hungary’s controversial new ad tax law in the International Court of Justice in The Hague, according to Andreas Rudas, VP, regional operations & business development CEE and Asia, RTL Group.
Speaking to the radio station Klubrádió and quoted by Portfolio, he added that a lawsuit is unavoidable, even if it entails a drawn-out legal battle.
Although RTL and in particular RTL Klub, its subsidiary and the leading broadcaster in Hungary, have been the most vociferous in their protests against the new law, TV2, Hungary’s second largest broadcaster, will also be hard hit.
Speaking to MNO and quoted by Portfolio, its CEO Zsolt Simon said that although TV2 “is supposedly exempt from advertising tax this year due to a huge loss carry forward accumulated in recent years”, it would be strongly impacted by the new tax in the future.
Indeed, starting from next year, it may fall into the 40% tax bracket, requiring it to pay up to HUF3 billion (€9.66 million) a year.