Hungary believes in its “Google tax” ins spite of the recent EC declaration.
According to officials, the Hungarian government is committed to retaining the current rules regarding the advertisement tax, and will do everything in order to protect this innovative Hungarian initiative which allows the state budget to collect the taxes that are due from global businesses engaged in advertising activities.
The European Commission declared the progressive rates of the advertisement tax incompatible with EU law today, and additionally ordered the elimination of the selective business advantages that are presumed to stem from the system. Officials say that the EC decision is contrary to EU law as the progressive rates of the advertisement tax aren't in violation of the state aid rules because businesses with the same sales revenues are required to pay the same amount of tax.
