Hungarian Government Plans To Tax Internet Giants Google And Facebook
Ferenc Sullivan 2016.03.10.
Hungary’s Ministry for National Economy is working on developing “innovative taxation solutions” to extend regular market terms and conditions to domestic and global Internet-based enterprises such as Google and Facebook, the business daily Világgazdaság has reported.
While the ministry declined to reveal any exact plans, a government resolution obliges the Minister for National Economy, Mihály Varga, to hand in a report to the government until 30 June 2016 on the possibilities of countering tax evasion practices of global Internet enterprises based on successful international examples.
Speaking earlier, Tamás Deutsch, an MEP for Hungary’s ruling centre-right Fidesz party, said that this is necessary because the present tax system fails to address the fact that certain Internet-based multinationals gain significant revenue while not taking their share in network-building and paying only minimal amounts of tax.
According to the paper’s estimates, Google and Facebook could be taking as much as HUF 20 billion per year out of the country untaxed.