Some background.
- the proposed rate is 150 HUF/GB, that's around 0.5 EUR/GB or 60 cents/GB.
- the internet speeds in Hungary are relatively high, it's quite common to get 100 Mbps for $20/mo
- the minimum wage is around 250 USD/mo, the average net wage is $650/mo
- the levy should be paid by the providers, but probably they're going to be able to deduct it from their other taxes, that means profitable companies won't pay, currently non-profitable companies will
- the tax will be capped per subscription, the cap is rumored to be around $4 for individuals and around $25 for companies -- but most households have 2-3-4 phones, cable internet, etc.
- it's very likely that this is going to wipe out the currently loss-making telcos that can then be bought by the state (nationalized) and their assets funneled to cronies (even there was a public bid for the assets nobody would start a new company as it'd be making losses in the beginning therefore they could not deduct this tax from their taxes -- so it'd result in even more losses)
Also, it's very much likely that this is a deliberate distraction from the political conflict between the USA and Hungary that has emerged last week. (Edit: it's still bad though, as a journalist put it, it's like spraying pepper in the eyes of a pitbull: it's distracting, but you might end up in a really big trouble.)
- the proposed rate is 150 HUF/GB, that's around 0.5 EUR/GB or 60 cents/GB.
- the internet speeds in Hungary are relatively high, it's quite common to get 100 Mbps for $20/mo
- the minimum wage is around 250 USD/mo, the average net wage is $650/mo
- the levy should be paid by the providers, but probably they're going to be able to deduct it from their other taxes, that means profitable companies won't pay, currently non-profitable companies will
- the tax will be capped per subscription, the cap is rumored to be around $4 for individuals and around $25 for companies -- but most households have 2-3-4 phones, cable internet, etc.
- it's very likely that this is going to wipe out the currently loss-making telcos that can then be bought by the state (nationalized) and their assets funneled to cronies (even there was a public bid for the assets nobody would start a new company as it'd be making losses in the beginning therefore they could not deduct this tax from their taxes -- so it'd result in even more losses)
Also, it's very much likely that this is a deliberate distraction from the political conflict between the USA and Hungary that has emerged last week. (Edit: it's still bad though, as a journalist put it, it's like spraying pepper in the eyes of a pitbull: it's distracting, but you might end up in a really big trouble.)