Hungary adopts controversial media tax
Hungary's parliament approved on Wednesday (11/06/2014) a tax on advertising that critics say will further erode press freedom and cripple the media industry in the EU member state under Prime Minister Viktor Orban.
The right-wing Orban, 51, re-elected in April, has already been accused of undermining other key democratic institutions since sweeping to power in 2010, something he denies.
The new tax is the latest in a series of so-called "special" levies passed by Orban's government since 2010 on sectors typically dominated by foreign companies like banking, energy, retail and telecoms.
In 2011 Orban brought in new media laws, set up a powerful regulatory authority and centralised public media channels - moves blasted by the rights body OSCE as potentially having a "chilling" effect on press freedom.
Orban's government says the new levy amounting to 40 percent of advert revenues will fund developing schools. It also argues that much commercial media output, particularly on TV, is damaging to society.
A street protest for press freedom and against the tax drew more than 1,000 people Monday.
Last week major newspapers and websites published blank front pages while commercial radio and TV channels went off the air for 15 minutes last week in a coordinated protest.
Some analysts say the tax is part of an ongoing effort to tame the press and push out foreign media companies like RTL Klub, which broadcasts news programmes that regularly criticise the government.
The German-owned TV channel, Hungary's largest commercial media firm, will be the only company to pay the top rate, providing about half of the total forecast tax intake.
"This tax... clearly targets RTL first and wants to challenge our independence but also generally the freedom of speech in Hungary," RTL Hungary's chairman Andreas Rudas told AFP via email last week.
Advertising trade body head Zsolt Urban told AFP last week that the "crippling" tax will lead to job losses and some companies leaving Hungary.
The legislation was passed by 144 votes to 30 against in parliament, where Orban's Fidesz party had a two-thirds majority. President Janos Ader, an ally of Orban, still has to sign it into law. - Sapa-AFP
