This will be the second referral against Hungary in connection with “crisis taxes” introduced in 2010. The first one was in connection with retail taxes and the latest is to do with the tax on the telecoms sector.
The economy ministry said in a statement that Hungary can defend its position regarding the telecoms tax, “as it is not a fee but a tax”.
The Commission had argued that the telecoms tax breached an EU regulation which states that a fee affecting specifically the telecoms sector can only be charged in proportion to costs.
The ministry said Hungary would have to repay 160 billion forints (EUR 573.7m) worth of tax if the EU court rules against it.