This article is more than 6 years old

This article is more than 6 years old

Media companies in Hungary are alarmed by a proposal to impose a tax on advertising revenues, arguing that it threatens press freedom.

It would tax annual ad revenues in several bands, rising to a maximum rate of 40% on revenues above about £50m.

Two of the country's largest TV channels, RTL and TV2, plan to go off air tomorrow in protest at the draft bill drawn up by a member of the governing Fidesz party.

Even pro-government media organisations have spoken out against the idea. Peter Csermely, deputy editor of Magyar Nemzet - generally regarded as a pro-Fidesz newspaper - said the proposal was a government attempt "to step on the throat of press freedom."

In a signed he editorial, he wrote: "The ad tax shrinks media resources, makes its job more difficult, limits its efficiency and impedes it from fulfilling its tasks."

Media analyst Agnes Urban said the tax could increase government influence on Hungary's commercial TV market. She believes the government's aim is to improve TV2's position and weaken that of its successful competitor, RTL.

If the proposal becomes law, it is estimated that RTL's tax bill would reach £12m, nine times its 2013 profits.

The Hungarian Advertising Association said it was shocked by the tax, pointing out that much of Hungary's media operates either at a loss or with small profits.

Some critics view the move as a further attempt by the prime minister, Viktor Orban, to centralise political control and increase the role of the state.

Sources: Euro News/Boston Herald