EU slams Hungary’s plan for Internet tax

Published October 29, 2014
The digital part of the economy is probably the main thing keeping Europe out of recession right now. — File photo/AFP
The digital part of the economy is probably the main thing keeping Europe out of recession right now. — File photo/AFP

BRUSSELS: The Europ­ean Union (EU) on Tuesday denounced Hungary’s plan for an Internet tax as a new threat to political freedom in the country and also for broader EU economic growth.

EU digital commissioner Neelie Kroes believes it is a “particularly bad idea” and will continue to support protests like those against the proposed levy held Sunday in Budapest, her spokesman Ryan Heath said.

The proposal has to “be seen as part of that pattern of actions which have limited freedoms,” Heath told reporters in Brussels.

He was referring to the government of Hungarian Prime Minister Viktor Oban, which has cracked down on media regulation and the justice system. “If Hungary becomes a precedent in this instance, it can become a problem in a lot of other member states and become a problem for Europe’s wider economic growth,” Heath said.

“The digital part of the economy is probably the main thing keeping Europe out of recession right now,” he said.

“So taxing that in a country that is already below the average on digital indicators is a particularly bad idea,” Heath said. The proposed levy also flies in the face of personal efforts by Kroes over the last five years to promote the digital economy across Europe, Heath said.

Published in Dawn, October 29th , 2014

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

By-election trends
Updated 23 Apr, 2024

By-election trends

Unless the culture of violence and rigging is rooted out, the credibility of the electoral process in Pakistan will continue to remain under a cloud.
Privatising PIA
23 Apr, 2024

Privatising PIA

FINANCE Minister Muhammad Aurangzeb’s reaffirmation that the process of disinvestment of the loss-making national...
Suffering in captivity
23 Apr, 2024

Suffering in captivity

YET another animal — a lioness — is critically ill at the Karachi Zoo. The feline, emaciated and barely able to...
Not without reform
Updated 22 Apr, 2024

Not without reform

The problem with us is that our ruling elite is still trying to find a way around the tough reforms that will hit their privileges.
Raisi’s visit
22 Apr, 2024

Raisi’s visit

IRANIAN President Ebrahim Raisi, who begins his three-day trip to Pakistan today, will be visiting the country ...
Janus-faced
22 Apr, 2024

Janus-faced

THE US has done it again. While officially insisting it is committed to a peaceful resolution to the...