Global Tax 50 2014: Hungarian protestors

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement


Global Tax 50 2014: Hungarian protestors

Popular uprising

 Hungarian protestors

Hungarian protestors is a new entry this year

Hungarian Prime Minister Viktor Orbán has cut a controversial figure since being re-elected with a two-thirds majority in April.

Although his party – which he was a founding member of and has led since 1992 – also performed well in May's European elections, he has disillusioned the public with a series of industry-specific taxes.

One such tax, introduced in the summer, was levied on advertising revenues generated by media organisations, affecting companies in several bands up to a maximum rate of 40% on revenues of more than about $80 million.

However, the tax was criticised as an attack on media plurality, because much of its revenue would be garnered from just one broadcaster, providing a competitive advantage to state broadcaster TV2. The tax bill on German company RTL's revenues would have amounted to about $18 million – nine times the TV station's profits from the previous year.

While the public reaction to this levy could be described as disgruntled, there were no significant popular objections, despite RTL and TV2 both going off the air for a day in protest.

When the government proposed implementing a tax on internet usage of Ft150 ($0.61) per gigabyte, however, the public was incensed.

Within a week, 10,000 people had marched against the proposed tax in Budapest.

"The move… follows a wave of alarming anti-democratic measures by Orbán that is pushing Hungary even further adrift from Europe," said the organisers of the march.

"The measure would impede equal access for cash-poor schools and universities," they added.

The reaction forced the government to add an amendment to the Bill, capping the potential charge for individuals at Ft700 per month and for companies at Ft5,000 per month.

However, the concessions were not enough to quell the demands of the protesters that the tax be scrapped and as many as 100,000 in Budapest – a city of 1.8 million – again took to the streets.

Protests were recorded in other Hungarian cities, as well as solidarity protests in Poland, Germany and the UK, and Orbán had no choice but to back down on the tax less than a week after the first protest.

There is no doubt that other countries will have been closely observing the tactic of industry-specific taxes, both for the purpose of revenue collection – the 'internet tax' was set to raise more than $115 million per year – and for targeting specific industries.

One lesson they should take from Hungary is that taking on one of the most organised demographics in the world – internet users – is likely to end in defeat.

The Global Tax 50 2014

View the full list and introduction

Gold tier (ranked in order of influence)

1. Jean-Claude Juncker  2. Pascal Saint-Amans  3. Donato Raponi  4. ICIJ  5. Jacob Lew  6. George Osborne  7. Jun Wang  8. Inverting pharmaceuticals  9. Rished Bade  10. Will Morris


Silver tier (in alphabetic order)

Joaquín Almunia • Apple • Justice Patrick Boyle • CTPA • Joe Hockey • IMF • Arun Jaitley • Marius Kohl • Tizhong Liao • Kosie Louw • Pierre Moscovici • Michael Noonan • Wolfgang Schäuble • Algirdas Šemeta • Robert Stack


Bronze tier (in alphabetic order)

Shinzo Abe • Alberto Arenas • Piet Battiau • Monica Bhatia • Bitcoin • Bono • Warren Buffett • ECJ Translators • Eurodad • Hungarian protestors • Indian Special Investigation Team (SIT) • Chris Jordan • Armando Lara Yaffar • McKesson • Patrick Odier • OECD printing facilities • Pier Carlo Padoan • Mariano Rajoy • Najib Razak • Alex Salmond • Skandia • Tax Justice Network • Edward Troup • Margrethe Vestager • Heinz Zourek

more across site & shared bottom lb ros

More from across our site

Boaz Goren’s move to the upstart PE-backed firm takes the number of senior UK tax professionals who have left EY this year to 13
The allegations against Deloitte Cyprus raise uncomfortable questions about how far the big four can distance themselves from misconduct at member firms
The UAE accounted for most Middle East promotions and new rankings, as A&M Tax, Baker McKenzie, Dhruva Consultants and DLA Piper breached the top tier
Spanish-headquartered multinationals lead on reporting quality, while US and Swiss groups lag in the Fair Tax Foundation’s expanded analysis
Former IRS commissioner Danny Werfel joins ITR for a must-listen conversation spanning his time leading the agency, his AI risk framework, and the future of the OECD
Tax and legal services was PwC’s fastest-growing business line last year, helping to put the firm back on a par with its big four rivals
Ex-EY and Hourani & Partners leader Zain Satardien is using flexible staffing and AI-enabled systems to test a leaner model for specialist legal and tax advice
The big four firm is rightfully prioritising transparency and accountability as it seeks to rebuild from its scandal, but a glaring structural issue remains
A recent hiring flurry has taken the firm’s number of partner appointments this year to 121 and put it on track to hit 160 partner target early
The move brings specialist tax and litigation capability to EY as it seeks to close the gap on Baker McKenzie and Venezuela’s leading local firms
Gift this article