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Hungary to Spend Proceeds of Telecom Tax in 2010, Index Reports

Hungarian lawmakers approved a budget amendment allowing the government to spend the proceeds of an extra tax on telecommunications companies this year, news portal Index said.

The expected revenue of 61 billion forint ($291 million), accounting for as much as 0.3 percent of economic output, will be used to pay international membership fees and to settle debt amassed by law enforcement institutions and prison services, the portal said, citing a deputy state secretary at the Economy Ministry. The payments were not due this year, Index said.

The government levied the extra telecommunications tax, together with special taxes on other industries, to ensure that it will meet this year’s budget deficit target, according to the news portal.

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