The government is considering making changes to the way the advertisement tax applies to internet content providers, because global companies do not fully participate in alleviating the public burden, a government official told Tuesday’s Napi Gazdasag in an interview.

Laszlo L. Simon said that as it currently stands, the ad tax was expected to bring in revenues of 8 billion forints, and these would flow directly into the state coffers.

The reason the ad tax is a sales type of tax is that experience shows firms are clever at hiding their real profits, the cabinet state secretary said.

“We think this makes it harder to dodge paying tax if the deduction targets the income side,” he said.

“There is nothing [hidden agenda] behind the content of the law and there was never any government intention to go against [commercial television station RTL Klub],” he said, reacting to the paper, which put it to him that RTL would be paying 40 percent of the tax’s total revenues. “The company, in any case, makes a serious profit from year to year, so it is unlikely that a few billion forints will suddenly floor it.”

Photo: MTI – Peter Komka


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