Hungary Rocked by Huge Protest over Controversial Internet Tax

Holding shining mobile phones thousands of demonstrators marched through Elizabeth Bridge across River Danube on October 28 as they protestee against the Hungarian government's plans to levy the use of Internet. Photo by EPA/BGNES

Tens of thousands of Hungarians flocked to the streets of the capital Budapest to protest plans of the government to levy the Internet.

Demonstrations were held on Tuesday evening despite the cabinet's assurances only Internet providers will be charged, since critics, and the opposition as well, argue the move would hurt Hungary's digital economy and also affect household consumers by raising Internet bills.

About 35 000 to 40 000 people gathered in downtown Budapest according to Hungarian media outlets cited by Germany's Zeit, just two days after a smaller demo was held Sunday.

Thinner crows gathered in six other cities.

Participants in the rally describe the proposed measure as an infringement on freedom on speech and on one's right to be informed.

Some critics have suggested the tax could send Hungary back to the 1990s in terms of access to Internet.

The multitude demanded Tuesday that the government should scrap its latest bill, with others also calling for Prime Minister Viktor Orb?n's resignation. 

Earlier the EU's Digital Agenda Commissioner Neelie Kroes said she supported protests against the proposal which she described as harmful.

Under initial plans unveiled by the Budapest government, a tax of HUF 150 (EUR 0,50) per GB was to be imposed, but the cabinet later promised to add a cap on what would be paid by households. It added the legislation, if approved, would only affect providers to a greater extent.

A "new edition" of the draft proposal envisages a monthly limit of EUR 2.26/GB for households and EUR 16.17 for companies, adding Internet suppliers would have to pay the sum for their customers.

State revenues from this tax alone might amount to EUR 660 M, estimates show.

Such a surge in incomes would certainly help Hungary's government in its struggle to tackle the budget deficit which is currently at about 80 percent of GDP.

Cabinet officials earlier explained their aim was also to complement a tax on telephone calls and to use the money to improve access to the Internet in rural areas.

Orb?n's government has already imposed heavier tax burden on telecoms, energy utilities. VAT has been raised to 27 percent.

In June Parliament also approved to levy media advertisement.

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