Parliament formally modified Hungary’s controversial advertising law on Wednesday. By a vote of 144 in favor to 50 opposed, the threshold over which the advertising tax must be paid was lowered from HUF 500 million (USD 1.77 million) to HUF 100 million (USD 353,870). A flat tax of 5.3 percent replaces the progressive tax rates.Which came under pressure from European Union regulators;
The European Commission has opened an in-depth investigation into whether Hungary's advertisement tax introduced in June 2014 complies with EU state aid rules. In particular, the Commission has concerns that the progressive tax rates, ranging from 0 to 50%, could selectively favour certain companies and give them an unfair competitive advantage.Worried about the unintended consequences of progressive taxation. That's progress!
Why don't EU go with that, guys?