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European Court Okays Hungary Advertisement Tax

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European Court Okays Hungary Advertisement Tax

The European Court of Justice on Thursday annulled a European Commission selection which had declared the Hungarian advertisement tax incompatible with the European Union’s regulations on nation subsidies.

According to the Luxembourg court’s ruling, the fee had no sufficient proof that the Hungarian tax could selectively gain taxpayers.

In 2016, the commission stated that the Hungarian law would offer an unjustified gain to groups with low marketing revenues and ones that did no longer have earnings in 2013, and stipulated that the Hungarian government should “repair same treatment in the marketing marketplace”.

In its ruling, the courtroom said businesses with a better turnover incurred decrease manufacturing expenses due to economies of scale and could have a proportionally higher sales and pay better taxes.

The ruling is appealable.
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