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No Ad Tax for Small Advertisements

2014.07.03.

Parliament modified Monday’s ad tax law on Wednesday so that small advertisers are no longer effected by it. The previous version of the proposal stated that any organization that pay more than 80 EUR (25.000 HUF) per month on advertisements should be subject to the tax, with many criticizing the limit as unrealistic. With the new modification in place the 80 EUR limit has been moved to 8.000 EUR (2.5 million HUF) as the battle between law making and RTL Group wages on the issue of taxation.

The modification was preceded by severe criticism. Zsolt Urbán, president of the Hungarian Advertisement Association (Magyar Reklámszövetség, MRSZ) said in a interview for site Napigazdaság.hu that the proposal would further widen the market gap between global and Hungarian members of the sector. Urbán also pointed out that the law does not specify what constitutes as media services, and such, advertisements payed by small companies can be mistaken for a serious advertisement campaign.

Members of the opposition also bombarded the law with heavy criticism, with socialist party MSZP naming small enterprises yet another casualties of the advertisement war, while Együtt-PM pointed out that with the previous versions of the law, even companies advertising on Google or Facebook would have been subject to the law.

Photo: RTL Group