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Internet Tax


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http://www.portfolio.hu/en/economy/hungary_to_impose_internet_levy_in_2015_tax_plans_show.28561.html

 

 

Hungary’s Economy Minister Mihály Varga has on Tuesday submitted to Parliament a draft on changes to the tax regime to be implemented in 2015. An amendment of the telecom law is also included, according to which the telecom tax would be extended to Internet services. The tax will be proportionate to data traffic and every gigabyte started will cost 150 forints. 

 

Varga has already told a press conference earlier today that the scope of the telecom tax would be extended to Internet services. He argues that the original subject of the levy, namely phone calls are made and text messages are sent mostly not traditional tools, rather through the Internet. 


The base of the tax in the case of Internet service will be data traffic measured in gigabytes generated either by the subscriber or the user as specified by the law on Electronic Communication Act. 

The rate of the tax is HUF 150 per every gigabyte started. 

The subject of the tax is the service provider. 

Fulfilment:The service provider shall calculate and pay the tax by the 20th day of the second month from the month data traffic - calls, messages sent, data traffic - was generated. 

Péter Banai, state secretary responsible for budget issues at the National Economy Ministry, told an online press conference today that the Internet tax is estimated to generate HUF 20 bn for the budget.

 

Let there be riots.

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I see no good, whether it be politically, or economically, come from this rational decision.

 

I assume there logic is:

 

>High internet usage = higher income

>Tax based on usage rate

>More tax monez without hurting the poor financially

 

Still, it's political suicide. 

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I assume there logic is:

 

>High internet usage = higher income

>Tax based on usage rate

>More tax monez without hurting the poor financially

 

Still, it's political suicide. 

So they want us to take our economies that are already poor as shit, and want them all to pay about.. 50x more in taxes. Genius

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how to outrage nerds: touch anything related to games, gaming, internet, comics

 

whether it will actually cause such mass public outrage is yet to be seen. it works out as about 40p per GB, if you use 60GB in a month that's quite intensive and will apply to only a small percentage of the population, and that will cost them £24 a month. a lot, as a yearly cost, i suppose. i doubt it will be quite the political suicide you guys seem to believe it will be, and also i would question exactly how much contextual knowledge you have of the Hungarian political scene to make such sweeping judgements.

 

oh wow, and i also missed this: The subject of the tax is the service provider.

 

so there's a pretty good chance the tax won't be passed on in its entirety to consumers, depending on the hungarian ISP market. theoretically if the market is reasonable competitive, the tax will impact both the suppliers and the consumers.

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HUF 150 is probably about a dollar equivalent in Hungary - that is a lot of money and the cost will probably be passed on to consumers

 

more like 0.61$

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