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Hungary's Plans For Internet Tax On Hold After Protests

An anonymous reader writes: When news broke last week that the Hungarian government was planning to tax internet traffic at a rate of about 62 cents per gigabyte, people on the internet were outraged. But it went beyond that: there were protests in the streets in Hungary, and the European Union warned against the plan. Now, Hungarian Prime Minister Viktor Orban has put the plans on hold, saying, "This tax in its current form cannot be introduced." It's not completely dead — Orban has planned consultations over the next year to look for other ways to tax revenue generated over the internet.

48 comments

  1. Do any of us know how much we really use? by TWX · · Score: 4, Interesting

    I honestly can't say how much traffic I pass. I'm curious as to how they came up with the rate they did, and how that number looks in Euros rather than US Dollars...

    --
    Do not look into laser with remaining eye.
    1. Re:Do any of us know how much we really use? by NotQuiteReal · · Score: 1

      Yes, my ISP (cox cable) provides usage statistics. I was only made aware of them when I got a nasty email warning that we had gone over our (250GB) limit! (Which I didn't know we had.)

      Aside from the one time, we had a perfect storm of events ("big sale" at Steam, someone on a Netflix binge for days, while recovering from a medical procedure, etc).

      Normally, my household usage is about 3GB /day (90GB/month).

      I would be pissed too, about a proposed, new monthly tax that would be over $50, for me. (€40).

      --
      This issue is a bit more complicated than you think.
    2. Re:Do any of us know how much we really use? by slashmydots · · Score: 1

      Last time I ran a bandwidth meter under heavy netflix usage, I have 200GB in one month. So I'd get taxed $124 for using netflix, lol. I wonder if the PM of Hungary even knows how computers work or how to send an e-mail. He seems like that level of idiot.

    3. Re:Do any of us know how much we really use? by Trailer+Trash · · Score: 1

      I honestly can't say how much traffic I pass. I'm curious as to how they came up with the rate they did, and how that number looks in Euros rather than US Dollars...

      My wife and I both work at home. She's using citrix or something to do a virtual desktop. I work in the music publishing and licensing industry and move quite a few AIFs and WAVs around. We use 250GB+ every month.

      That would be 150 Euro's per month in tax. For what?

      People should be pissed off.

    4. Re:Do any of us know how much we really use? by Anonymous Coward · · Score: 0

      I'm curious as to how they came up with the rate they did

      The Generous Leader dreamed of a flying pig with a golden ring on its tail so it was obvious that the rate should be exactly 62 cents (0.48 eur) per GB.

      Seriously, this is just a little bit of exaggeration!

    5. Re:Do any of us know how much we really use? by Anubis+IV · · Score: 1

      The only reason I know how much I use is because I'm frequently bumping up against my ISP's bandwidth cap (and thus getting stern warnings from them as I approach it), despite being on their highest-tier residential plan (i.e. the one with the highest cap) and despite not engaging in any illegal downloading (really!). They instituted it about a year back after placing some fine print (that I didn't see until afterwards) in one of my monthly statements, and I was immediately forced to upgrade my plan to a higher one since the cap they instituted on the plan I was using was roughly equal to my average monthly consumption at that point.

      But between cloud backups, Netflix, Hulu, YouTube, audio streaming, automatic app updates across many of my devices and services (e.g. iDevices, Steam, game consoles, etc.), video chatting, Dropbox/Box/iCloud syncing, and any number of other perfectly normal and entirely legal uses for an Internet connection, I regularly have to start rationing my daily usage to ensure that I won't go past the cap by the end of the month. At this point, I'm seriously considering a switch to commercial service, which would come without a cap, despite the fact that the connection would be nearly an order of magnitude slower.

      I'm dealing with it right now, in fact, what with it being the end of the month. As of yesterday, I have 5GB left to go for the month, so I've had to turn off most of my services and have been unplugging my connection while out of the house just to make sure that something like Steam updating a game doesn't put me over the limit.

    6. Re:Do any of us know how much we really use? by Opportunist · · Score: 1

      He probably doesn't. He'd the proverbial white trash right wing hick.

      It seems to work well for some countries, but I still say it's generally not a good idea to make the village idiot the mayor.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    7. Re:Do any of us know how much we really use? by IANAAC · · Score: 1
      I try to keep a decent handle on what I use, at least when it comes to a cellular hotspot I use.

      One tool I use with a laptop (but it could easily be installed on a Linux or BSD-based router, is VNStat - humdi.net/vnstat/

      It can monitor and report hourly, daily, monthly, etc and you can easily chose what interface to report (it monitors all active interfaces). There's also some graphics reporting capability, too, but I just use the command line output and awk-parse what I need.

    8. Re:Do any of us know how much we really use? by MaWeiTao · · Score: 1

      He might indeed be a stupid hick, but imposing taxes on every little thing is not something right-wingers typically do. That's primarily the purview of left-wing "progressives".

      Europe, or the rest of the world for that matter, doesn't share the all-or-nothing approach of American politics. Over there it's typical for political parties and politicians to be staunchly conservative on some policies and hard-left socialist on others.

    9. Re:Do any of us know how much we really use? by Opportunist · · Score: 1

      Don't conflate the European right with the American. The European Right is usually anything BUT "libertarian". Taxing something isn't considered inherently evil by them, as long as it doesn't cut into the profits of conservative, old and entrenched businesses.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    10. Re:Do any of us know how much we really use? by Anonymous Coward · · Score: 0

      Yes, I route all my traffic through Linux and the little network thing in the bottom task bar has a graph with totals.

    11. Re:Do any of us know how much we really use? by 0bject · · Score: 1

      So pretty much exactly the same as the American Right

    12. Re:Do any of us know how much we really use? by Anonymous Coward · · Score: 0

      Don't use facts and data to argue with Liberals. It makes them cry, then stick their fingers in their ears until Bill Maher, Jon Stewart, and Rachel Maddow tell them how to respond. Spoiler alert: that response usually amounts to calling you a racist, misogynist, inbred hick.

  2. 0.62$ per gigabyte? Stone age by NuclearCat · · Score: 3, Insightful

    It shows one more time, how retarded can be some politicians. Normal households have 40-200GB/month traffic, which is insane $24 - $124 extra per month. I hope Hungarians will kick him out for good.
    P.S. I am sure, if they can, they will tax even air for breathing.

    1. Re:0.62$ per gigabyte? Stone age by Anonymous Coward · · Score: 1

      Its already high, but think about 10 years down the road. I know in the US upgrading is slow, but in the last 10 years I went from a 12 GB limit to something closer to 300GB-1TB. In another 10 years, that 60 cents may be closer to 1000s of dollars per month.

    2. Re:0.62$ per gigabyte? Stone age by Anonymous Coward · · Score: 0

      Actually, it is the opposite here. In 2010, I had unlimited bandwidth, tethering wasn't an issue. Now, if I want a decent amount of bandwidth, I'll be paying $300 a month. If I move a terabyte of data, I'll owe $15,000.

    3. Re:0.62$ per gigabyte? Stone age by Anonymous Coward · · Score: 0

      Normal households have 40-200GB/month traffic,

      We don't like to use the word "normal"...

      No, really, I work in high performance computing, and I have about 10 GB/month in traffic. Perhaps you have a strange idea of what a normal person is.

    4. Re:0.62$ per gigabyte? Stone age by Anonymous Coward · · Score: 0

      P.S. I am sure, if they can, they will tax even air for breathing.

      Theres talk(if not already) of charging a tax on the LIGHT that hits installed solar panels. Additionally they already tax water in private wells.

    5. Re:0.62$ per gigabyte? Stone age by ADRA · · Score: 1

      "P.S. I am sure, if they can, they will tax even air for breathing."

      TANSTAAFL

      --
      Bye!
    6. Re: 0.62$ per gigabyte? Stone age by Anonymous Coward · · Score: 0

      So a normal person is someone who works in high performance computing....rather that say .... a Netflix or Hulu user? Uh ok.

    7. Re:0.62$ per gigabyte? Stone age by aevan · · Score: 1

      My parents hit 62 gig last month on theirs, and it's facebook, skype, youtube and online chess.

      Personally I top 100G with online games, online videos, and some torrenting.

      Hellfires, I'd top 1 Gig a month easy on dial-up back in the day. Gogo USENET binaries and IRC

  3. No surprise by Anonymous Coward · · Score: 1

    In a world where bandwidth has never been cheaper and companies and people make use of such. It is amazing to me that a government would think in any way by bringing those bandwidth costs back up to pre-who knows how long ago levels that this would only end in nothing but failure and screeching to a halt any company that'd want to setup shop, revolt by citizens etc. Strange world

    1. Re:No surprise by kheldan · · Score: 1

      If they want to kill the Internet in Hungary permanently, then by all means go ahead and find another way to do this, because that's what'll happen.

      --
      Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
    2. Re:No surprise by rasmusbr · · Score: 1

      Politician: How can we tax them there internets?
      Aide: Uh, we tax Internet companies through the regular revenue tax and through the salary tax that their employees pay and we put VAT on anything ordered through a web store, just like we have for regular stores.
      Politician: Yeah, sure, but I mean I feel there's so much money being dowloaded in the Internet. Just this morning one of my staff members downloaded an internet from Facebook for hundreds of dollars. Seriously. Hundreds of dollars! I think it was a new TV and and one of those newfangled DVD-players with 3-d glasses.
      Aide: It sounds like he ordered something from a web shop through a Facebook ad. He would have paid VAT on that. The business that operates the web shop will pay revenue tax on their earnings.
      Politician: Sure, but I mean it's not the same thing. Like, he got this through Facebook, through their internet!
      Aide: Yeah, I suppose.
      Politician: Look, you have to understand that the Internet is not like a big truck that you can just load stuff on... The Internet is like a series of tubes... With gigabytes going through them. Gigabytes I tell you! I want to tax those gigabytes. I think it's only fair that we do.
      Aide: Errr...
      Politician: Could you write up a proposal where we tax the gigabytes?
      Aide: I'm not sure if that would make sense, sir. Facebook is not a Hungarian company, so there is no way we can tax them.
      Politician: Listen. You know how ugly the draft budget looks. It's what, a 10% deficit? We need to be tough on this. I'm making it a profile issue.
      Aide: Hmm, okay I'll see what I can do. Oh. Speaking about money, I think it's time you give me a raise.

  4. Do any of us know how much we really use? by Anonymous Coward · · Score: 1

    DD-WRT has daily and monthly usage counters. It's become a point of pride for my roommates and I how big we can get our high score.

  5. The real cost of $0.62 / GB is.. by Anonymous Coward · · Score: 0

    0.62 x 320 = $198 (1 megabit).
    On Cox, I normally use 450 GB/mo. My bill is around $60. I can't imagine paying +$300. That's tantamount to a violent and bloody revolution!

  6. Did they crunch the numbers at all? by DumbSwede · · Score: 1

    With so much video being streamed today even 1 cent would have brought in considerable revenue. While I wouldn't approve of a tax of even 1 cent, it is hard to imagine how they came up with such a high target tax rate. For many their tax bill would likely be 5x higher than their Netflix subscription. How did they possibly think this would fly? Even is you eschewed online video the amount of data just see the news on CNN inexoribly climbs higher and higher every year with all the video add bloat on the sides. Sure, tax me on stuff I don't want to see anyway -- I think adblock downloads will skyrocket.

    Maybe Hugary isn't the biggest market, but content providers everywhere would band to fight a trend like this.

    1. Re:Did they crunch the numbers at all? by bigpat · · Score: 2

      Taxes are also sometimes about influence, control, and information as much as revenue. If the motivation was simply to raise revenue then they picked an unnecessarily intrusive way to do it by taxing bandwidth instead of taxing as a percentage of the monthly bill or even imposing a flat tax fee.

  7. It gets worse... by Jodka · · Score: 5, Informative

    A proposed internet tax is the least of problems with Hungary's current government. Selected headlines from around the web:

    The Guardian: Hungary's rabid right is taking the country to a political abyss

    The Tablet: Meet Europe’s New Fascists

    The Telegraph: Inside the far-Right stronghold where Hungarian Jews fear for the future

    Aljazeera: Hungary: Towards the Abyss Investigating why critics of Hungary's authoritarian government believe it is leading the country towards fascism

    The Tablet's, tagline is "A New Read on Jewish Life" and of course Aljazeera is Islamic. The Telegraph and Guardian are respectable British publications. They all agree that Hungary is leaning fascist.

     

    --
    Ceci n'est pas une signature.
    1. Re:It gets worse... by Beyond_GoodandEvil · · Score: 2, Insightful

      The Telegraph and Guardian are respectable British publications. They all agree that Hungary is leaning fascist.
      That word, you keep using it, I don't think means what you think it means. Seriously, the grauniad is anything but a respectable British publication. One should ask precisely why Hungary is heading towards fascism.

      --
      I laughed at the weak who considered themselves good because they lacked claws.
    2. Re:It gets worse... by Savage-Rabbit · · Score: 1

      The Telegraph and Guardian are respectable British publications. They all agree that Hungary is leaning fascist.
      That word, you keep using it, I don't think means what you think it means. Seriously, the grauniad is anything but a respectable British publication. One should ask precisely why Hungary is heading towards fascism.

      So what is a respectable British newspaper? The Sun? The Daily Mail? ... Does such an animal even exist?

        -- just curious.

      --
      Only to idiots, are orders laws.
      -- Henning von Tresckow
    3. Re:It gets worse... by Anonymous Coward · · Score: 0

      The internet tax wasn't really a "tax" but a thinly disguised attempt to gain control of information distribution so an authoritarian government can wield it as a club. Some would say it was also legislation bought by traditional media outlets to deal with competition from the internet. (You could argue, though, that these are pretty much the same thing. In shitty failing states the rulers and media distributors are the same people. See Italy, Greece, Russia, Mexico for examples)

      The tax is just a wedge. The real power comes from uneven enforcement of said tax.

    4. Re:It gets worse... by Anonymous Coward · · Score: 0

      The Telegraph and Guardian are respectable British publications. They all agree that Hungary is leaning fascist.
      That word, you keep using it, I don't think means what you think it means. Seriously, the grauniad[sic] is anything but a respectable British publication. One should ask precisely why Hungary is heading towards fascism.

      "Respectable," means that people respect it. It does not mean accurate, relevant, nor denote any virtue aside from a particular form of public approval. The GP is expressing the belief that if the public was asked to rank the respectability of news publications then the Telegraph and Guardian would be toward the top of the list. In an objective and and empirical sense, the GP seems correct; it is an objective statement about subjective opinion, but not itself a subjective opinion. You are conflating the meta.

  8. The leopard will not change its spots by fnj · · Score: 1

    Ever notice how the taxers never acknowledge they shit a big one when they propose a particularly hideous tax and get called on it?

    This tax has been put "on hold", not burned, salted and buried in the deep grave as it deserves - and the sponsor disappear in disgrace from public life forever. The prime minister is unabashedly scheming how he can slip something else like it past the people as soon as possible.

    1. Re:The leopard will not change its spots by wierd_w · · Score: 3, Interesting

      That's because government likes power, and money is basically instant power.

      The problem, is that government types are often so blinded by things like this, that they fail to comprehend how that money works in the market-- they aren't economists, they are inept managers looking to bolster personal powers.

      This happens in every government, of every kind.

      Hungary sees the internet, (Fuck, EVERY country sees the internet this way!) and sees a system saturated in untapped "Taxation potential". They don't realize that one of the big reasons WHY the internet is a powerhouse of economic activity, is BECAUSE it is not regulated by local and foreign tax control.

      Then you also have the "We can tax it, therefor we can regulate and control its use" power trippers. "I can control what people see, do, watch, and hear on the internet!" gives such people a very big boner indeed. Nothing says "I can shape your network use!" like a great big service fee, and nothing says "You will poison the well with my special sauce brand of misinformation when I tell you to!" like "Incentive tax breaks."

      A free, open, untaxed, unregulated internet is the antithesis of these people's desires. that's why they refuse to be sensible about this, and are FOCUSED on getting that control.

  9. Do any of us know how much we really use? by Anonymous Coward · · Score: 0

    I honestly can't say how much traffic I pass.

    Me: 4-7GB mobile, hundreds through VDSL (50GB game downloads, Netflix etc, PS4 remote play streaming to my Vita). I don't live in Hungary (yet), but my internet tax as proposed would easily be a multitude of the actual service costs.

  10. Did they crunch the numbers at all? by Anonymous Coward · · Score: 0

    Maybe they *did* crunch the numbers. Maybe they wanted the taxes to be much higher than Netflix, to discourage things that use lots of bandwidth. Remember, video is the biggest user of bandwidth for most people, and certain kinds of people don't like video. Video brings in moving images -- not just images in motion, but images that move people to feel and act differently. There's a lot of pro-EU, pro-West video out there that Jobbik and pro-Russian Hungarians don't like. There's also porn and other video that "corrupts the youth" (the same charge that's been lobbed about since Socrates' day). Sin-taxing away video probably seemed like a good way to weaken the opposition to the right-wing ideologies.

  11. Untapped tax source by smaddox · · Score: 2

    When you're a politician, everything looks like a tax source.

  12. What a pity by gelfling · · Score: 1

    They could have made it so unaffordable it could have given them a chance at nationalizing it and restricting it the way good socialists countries always do. Hopefully Obama will do it though. All Hail Dear Leader.

  13. It's a cover-up by Anonymous Coward · · Score: 0

    People are responding which is good but keep in mind it was just a stupid attempt from the governing party to lower the attention on the very embarrassing, unprecedented US travel ban, issued few weeks ago against a dozen Hungarian gov officials by the State Dept, precisely due to their role in the endemic corruption that now forcing US companies to pay up or get out (by all means and purposes corruption is now government-sanctioned in Hungary, pretty much unmatched anywhere in the Western world.) Unfortunately for the ruling party it worked so well that it galvanized an all-across opposition against them - now they have ghost out of the bottle, they have to be very careful how to deal with it because people are absolutely fed up with the ruling party. The arrogant and openly corrupt, totally incompetent gov officials are out of control eg new Sec of State is such an arrogant thirty-something bumbling idiot who just bought a house for almost a million dollar, all cash, without ever having any job, claiming his parents helped him... response to the public scandal? His colleague in the party (himself notorious for finding more and more, previously unreported rooms (!!!) in his super-expensive inner city apartment) quickly explained that actually having a giant pool in a dedicated building on your property is actually a real pain in the ass, there's nothing to be envy there... breathtaking cynicism, absolutely uninhibited arrogance at its worst - essentially these are mainly small town boys and village rednecks freely raping public coffers (did you hear about the PM's 'own' soccer stadium, built quite literally behind his weekend house in the village he grew up in?).
    Corruption ran amok so badly in Hungary that now laws are regularly being re-written to fit certain ruling party people or oligarch's interests. It's totally systemic, you can only find similar level in Russia, Central-Asian or Latin- and South-American banana republics, India etc. It's really a shame that such a nice country in the middle of Europe plunged this deep and the EU is unable to force them to respect common standards.

    1. Re:It's a cover-up by Anonymous Coward · · Score: 0

      On a sidenote - the tragedy is that the people are so depolitized in Hungary that there are no alternative to the ruling party - they got to power because the other party with a leftist label was even more annoying at the time ( 2008? ), AND because most of the more-or-less-normal simply did not went to the polls. People do not believe in the system anymore. Normal honest person do not go into politics. What you see as the political parties ( left right whatever ) are the leftover. Also take into account that the net hourly rate in Hungary is pretty near to something like 2-3 USD. So for 10GB you need to work 2-3 hours :D. Not much of a point having mass demonstrations, while there are still no alternative, no honest persons or organizations to put into power instead of the present ones.

  14. That's right wing politics for you by Opportunist · · Score: 1

    And I'm not talking about Republican this time. I'm talking about the kind that Orban is. Basically, the political agenda he rides on is a simple one. It has to be so his target audience understands it. Find a scapegoat, blame him for everything, add some xenophobia and an external boogeyman, paint the other parties as corrupt and feeble (ok, that part was not THAT hard and is actually even not that far from the truth) and wrap it all in easy answers that any idiot can understand.

    The result is the Hungarian government.

    Of course something like this has to draw its money from something that their average voter neither understands nor uses heavily. And internet is still something in Hungary that requires you to have some sort of money. His poor idiots (i.e. his core voting group) won't be hit by that.

    It's just politics for his voters. Next up is probably a tax on books without pictures, TV programs without explosions and anything that could be considered high brow entertainment.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  15. Here's how you can do it by swschrad · · Score: 1

    every time the name of Hungary's dictator appears on Da ISH, charge him personally ten euros tax. that ought to settle matters.

    --
    if this is supposed to be a new economy, how come they still want my old fashioned money?
  16. Tax avoidance through mesh networks by Wootery · · Score: 2, Interesting

    If I transfer a file over a direct ethernet/cat5e connection, between two devices which happen to also be connected to the Internet, I presume that doesn't count as taxable data-transfer.

    But it would be taxed if I sent it over the Internet, even if the data never went further than the ISP.

    What if we create large mesh-networks, such that commercial ISPs are only necessary for connecting meshes? As the meshes grow, the amount of tax to be paid tends toward zero.

    1. Re:Tax avoidance through mesh networks by Anonymous Coward · · Score: 0

      That's a great way to nudge legislators to introduce a tax on mesh-networks. Writing new legislation takes about 3 days. You just can't keep up.

    2. Re:Tax avoidance through mesh networks by Anonymous Coward · · Score: 0

      What if we create large mesh-networks, such that commercial ISPs are only necessary for connecting meshes? As the meshes grow, the amount of tax to be paid tends toward zero.

      I believe this is already being organized.
      I was at both protests last week (the second one amassed around a hundred thousand people according to Reuters), and a nice lady in her 50s came up to me and handed me a flyer saying "Join us - meshnet.hu". We even had a short conversation about mesh networks, she seemed to be well-informed. There are lots of software developers and all kinds of geeks in Hungary (myself included), and on all manner of blogs you can read extremely detailed and outspoken criticism of what the government is doing. Political apathy is a very large part of how they got so much power, but now we saw a movement headed by nerds (the main organizer himself a developer) rapidly gathering crowds of tens of thousands within the space of 3 days (not just in Budapest). It really doesn't feel like it's just about the Internet tax, this tax is just another one in a long line of absurd and increasingly terrifying ideas this criminal gang is trying to implement.

  17. Double dipping assholes by Skylinux · · Score: 2

    Orban has planned consultations over the next year to look for other ways to tax revenue generated over the internet.

    How come countries always double dip?
    I already pay income tax on every cent I make. Any other taxes are double, triple, ... dipping on already taxed money.

    I really hope I will see the day when we strangle politicians by their fucking neck ties.

    --
    Everyone who buys Wild Hunt will receive 16 specially prepared DLCs absolutely for free, regardless of platform.
  18. You forgot the $3 upper limit... by Anonymous Coward · · Score: 0

    The propsed law a would not taxed a person more than $3 in total.