Mobile Phone Firms Criticise Hungarian 'Culture Tax' Proposal

by Ulrika Lomas, Tax-News.com, Brussels

26 September 2003

Hungary's three major mobile phone operators have issued a joint statement this week objecting to the government's 1% 'culture tax' on the industry which, they say will be passed on to customers through higher subscription tariffs.

According to Reuters, more than 73% of Hungary's population of 10.1 million own a mobile handset, and the three major operators (Westel, Pannon and Vodafone) contend that the Culture Department's levy "is not in the interests of subscribers."

"We think the proposal, which would affect almost eight million people, and which had not been discussed with those (mobile operators) affected, is totally unacceptable," the firms announced in the joint statement.

The operators have alleged that they received assurances that the Culture Ministry proposal was to be discussed at a government meeting on Wednesday (September 24). However, a spokesman for the Prime Minister's office told Reuters that the issue was not on the meeting's agenda.

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