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| Hungary internet tax cancelled after mass protests | Hungary internet tax cancelled after mass protests |
| (about 1 hour later) | |
| Hungary has decided to shelve a proposed tax on internet data traffic after mass protests against the plan. | Hungary has decided to shelve a proposed tax on internet data traffic after mass protests against the plan. |
| "This tax in its current form cannot be introduced," Prime Minister Viktor Orban said on Friday. | "This tax in its current form cannot be introduced," Prime Minister Viktor Orban said on Friday. |
| Large-scale protests began on Sunday, when demonstrators hurled old computer parts at the headquarters of Mr Orban's ruling Fidesz party. | Large-scale protests began on Sunday, when demonstrators hurled old computer parts at the headquarters of Mr Orban's ruling Fidesz party. |
| The draft law - condemned by the EU - would levy a fee on each gigabyte of internet data transferred. | The draft law - condemned by the EU - would levy a fee on each gigabyte of internet data transferred. |
| The protesters objected to the financial burden but also feared the move would restrict free expression and access to information. | |
| The levy was set at 150 forints (£0.40; 0.50 euros; $0.60) per gigabyte of data traffic. | |
| After thousands protested the government decided to cap the tax at 700 forints per month for individuals and 5,000 forints for companies. But that did not placate the crowds. | |
| 'It should not be done' | |
| Fidesz had said the special tax was needed to balance Hungary's budget in 2015. | |
| Speaking on Kossuth public radio, Mr Orban said that "if the people not only dislike something but also consider it unreasonable then it should not be done... | |
| "The tax code should be modified. This must be withdrawn, and we do not have to deal with this now." | |
| He said a measure seen by the government as a technical issue had become "a fear-inducing vision". | |
| There will be a national consultation on it in January, he said. | |
| A European Commission spokesman, Ryan Heath, said the tax was "bad in principle" because it was a unilateral measure applied to a global phenomenon. | |
| He said it was "part of a pattern... of actions that have limited freedoms or sought to take rents without achieving wider economic or social interest" in Hungary. | |
| The Commission has previously criticised Mr Orban's government for constitutional proposals seen to be cementing the Fidesz party's political dominance. |