EU racks up pressure on Hungary over contentious telecoms tax

The European Commission (EC) is expected to refer the government of Hungary to the European Court of Justice over its controversial special telecoms tax. Budapest’s relationship with Brussels has been strained since Hungary introduced the measure in 2010 to try to reduce its budget deficit and Reuters reports that it has seen documents that show Hungary will be referred – having twice failed to respond to requests to bring its tax legislation into line with EU law – and could ultimately face ‘severe fines’ if it does not toe the line. TeleGeography’s GlobalComms Database writes that in September last year the EC ordered the Hungarian government to abolish the tax or face legal proceedings

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OVETEL EU racks up pressure on Hungary over contentious telecoms tax