Hungary proposes reintroduction of advertising tax

The Hungarian Ministry of Finance has proposed reintroducing an advertising tax with a 3.75 percent rate. This measure is part of a broader fiscal plan by the Tisza government, which aims to generate 929 billion forints through various tax measures intended to promote fair taxation, environmental protection, and healthcare funding. The proposed advertising tax, alongside retail and insurance taxes, could contribute approximately 54 billion forints to the budget.

The Hungarian Advertising Association (MRSZ) and other professional organizations have expressed concerns regarding the proposal. They argue that the tax could negatively impact the national economy and the sustainability of domestic content providers, who rely heavily on advertising revenue. Industry representatives noted that while the current advertising tax rate is 0 percent, domestic companies already pay standard corporate, local, and VAT taxes. They also raised questions about how the tax would apply to global tech giants that operate from other EU member states, warning that the measure might disadvantage local media markets compared to international competitors.