World's First Internet Tax Canceled After Mass Protests
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Hungarian protesters hold up their cell phones at a demonstration against the world's first proposed Internet tax. (Borcsok/Tumblr)
The Hungarian government scrapped its proposal to tax Internet use Friday in response to mass demonstrations in the capital.
In defiance of what would have been the world's first tax on Internet use, thousands of Hungarians staged a mass protest last week in central Budapest. Demonstrators held up their mobile phones as they rallied the streets and destroyed computer equipment in protest of the inclusion of the tax in the 2015 budget proposal.
Much of the mobilization process took place through a Facebook group, validating the spirit of the protesters arguing that Internet use is a basic human and democratic right. Organizers of the group declared that "the measure would impede equal access to the Internet, deepening the digital divide between Hungary's lower economic groups, and limiting Internet access for cash-poor schools and universities."
In response to the first protest, the Hungarian government first suggested an amendment to the original proposal, to cap the tax at 700 forints (USD $2.87) per month. However, this was not enough to appease many Hungarians. Around 100,000 demonstrators descended to the streets to express their dissatisfaction last Tuesday, in the largest public demonstration against Prime Minister Viktor Orban's administration.
Orban conceded on Friday. "This tax in its current form cannot be introduced," he said.
Thousands of Hungarians rallied across the Elisabeth Bridge in protest after Prime Minister Orban suggested an amendment capping the Internet tax. (akukoricagyermeke/Tumblr)
The administration continued its attempts to justify the tax, claiming that it would simply be an extension of the existing telecommunications tax.
Per the proposal, a tax of 150 forints (USD $0.6) would have been levied per gigabyte of data - equivalent to about 45 hours of surfing the web, according to price comparison website Confused.com. The tax was estimated to generate a total of 100 billion forints ($414 million) in potential government revenue, according to The Atlantic.
The idea had met with harsh criticism from other European leaders, with an official denouncement from the European Union. Neelie Kroes, the European Union's commissioner for the digital agenda, expressed dissaproval of the policy on Twitter: "Proposed internet tax in #Hungary is a shame: a shame for users and a shame on the Hungarian government. I do not support!"
Her spokesman Ryan Heath further expanded: "The digital part of the economy is probably the main thing keeping Europe out of recession right now. So taxing that … is a particularly bad idea. If Hungary becomes a precedent in this instance, it can become a problem in a lot of other member states and can be a problem for Europe’s wider economic growth."
Reach Staff Reporter Adi Radia here. Follow him on Twitter here.
