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Hungary internet tax cancelled after mass protests | Hungary internet tax cancelled after mass protests |
(about 3 hours 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 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. | 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. | 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. |
The BBC's Nick Thorpe in Budapest writes: | |
Viktor Orban does not often back down, but he has done so on this occasion for several reasons. | |
What happens next? Mr Orban's decision to cancel the tax deprives his opponents of a valuable rallying cry. The big question for them will be whether they can use the momentum of two big rallies to create new forms of opposition to Fidesz. | |
They have proven that he can be defeated. Mr Orban has proven that he is more flexible than many analysts give him credit for. | |
'It should not be done' | 'It should not be done' |
Fidesz had said the special tax was needed to balance Hungary's budget in 2015. | 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... | 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." | "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". | 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. | 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. | 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. | 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. | The Commission has previously criticised Mr Orban's government for constitutional proposals seen to be cementing the Fidesz party's political dominance. |