Advertising tax may be postponed again

By: Trademagazin Date: 2023. 10. 24. 12:30

According to a recent announcement by the Hungarian Advertising Association, positive negotiations are also taking place this year between János Gulyás and the prime minister’s chief of staff, Antal Rogán, regarding the renewal of the suspension of the advertising tax. Although there is no official mention of the suspension of the advertising tax in the autumn tax package, according to the association, the government is considering extending the suspension of the advertising tax.

In its letter and during the negotiations, the Advertising Association again emphasized the commitment of advertising and media industry enterprises to the fair payment of various taxes, and expressed their willingness to contribute to next year’s Hungarian budget. According to the unanimous opinion of the industry players, however, the restoration of the advertising tax would have a negative impact on economic growth, especially affecting the advertising industry, as it would unnecessarily burden the advertising industry with suffering or stagnant performance.

It is important to note that the government has not introduced the advertising tax before, last year’s tax package included a rate of 0 percent, and the current draft does not contain any section on the advertising tax at all. The industry association has previously reacted to the proposal for the re-introduction of the advertising tax, in their opinion this would be harmful not only to the advertising industry, but to the entire Hungarian economy. Thanks to previous successful negotiations, the advertising tax was not returned in the end.