Brussels challenges Hungarian telecoms taxes

The European Commission sent a request on 14 March 2011 for information to Hungary over the new 'special tax' imposed on the telecom sector to boost its tax revenues. Hungary introduced special charges for telecoms operators in October 2010.

The Commission said it had concerns that this tax is incompatible with EU telecoms rules, which require specific charges on telecoms operators to be directly related to covering the costs of regulating the telecoms sector. Hungary had two months to reply to the request, which took the form of a so-called 'letter of formal notice, the first stage of EU infringement procedures.

The Commission decided at the same time to refer France and Spain to the EU Court of Justice concerning similar 'telecoms taxes' (see IP/11/309).

European Commission: Press Release: IP/11/1108: Digital Agenda: Commission requests Hungary to end special tax on telecom operators http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/1108&format=HTML&aged=0&language=EN&guiLanguage=en

European Commission: Press Release, IP/11/308: Digital Agenda: Commission opens infringement procedure against Hungary over 'telecoms tax' http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/308&format=PDF&aged=0&language=EN&guiLanguage=en

ESO: Background information: Hungary tax move alarms investors http://www.europeansources.info/record/hungary-tax-move-alarms-investors/

EurActiv, 30.9.11: Hungary snubs EU injunction to scrap telecom tax http://www.euractiv.com/infosociety/hungary-snubs-eu-injunction-scra-news-508027

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