Protests in Hungary Stymie Internet Tax Law

Protests in Budapest. Photo Courtesy of Wikimedia Commons.

November 10, 2025

The country of Hungary has been in the news recently after a proposed internet tax incited massive protests across the nation. The unrest caused by this proposed tax reflects the divisive nature of Hungarian politics, which has steadily been moving towards more authoritarian policies under the rule of Prime Minister Victor Orban. Whether the recent push-back against Mr. Orban’s policies will be the norm or an anomaly remains to be seen.

Protests began in Hungary after the government announced plans to impose a new tax on internet data transfer. The Hungarian parliament presented the plan in a draft tax code, which called for Internet providers to pay 150 forints, or about 60 cents, per gigabyte of data traffic. Although companies could offset corporate income tax against the new tax, the proposed tax caused much concern, among both citizens and internet providers. The tax was estimated to produce 20 billion forints of annual revenue, according to the Economy Ministry. Yet, this was likely a low estimate, as fixed-line internet traffic and mobile data transfers, at 1.15 billion and 18 million gigabytes each, could generate 175 billion forints, according consultancy firm eNet. Taking into accounting that internet traffic is growing over time, internet providers in Hungary could have been taxed more than 200 billion forints had the law been implemented.

The proposed tax plan, although directed toward internet providers, angered citizens, who believed that the increased taxes would be passed on to them through higher prices for internet service. Prime Minister Orban decided to nix plans for the tax after the massive protests against the action. This comes as a surprise to many considering Orban’s usually combative personality, as well as his well-documented swing towards autocracy.

Hungary, a central European country of just under 10 million people, is something of an anomaly; despite being a member of both NATO and the EU, it is seen as dangerously dismissive of the principles of free government. Hungary is a democracy, but Victor Orban, prime minister since 2010 as well as between 1998 and 2002, has openly declared his intention to make it an "illiberal democracy." In practice, this has meant government oversight of the press, weak civil liberties, and institutionalized nationalist rhetoric. Despite the promise of the fall of communism over twenty years ago, Hungary has begun to stray from the path set by the West and more closely followed by Poland and other central and eastern European states.

Orban reportedly has great admiration for Vladimir Putin, president of Russia and thorn in the side of West. The United States fears that Hungary may slide into the orbit of Moscow, thereby undermining NATO and EU support for the Ukraine and other anti-Russian positions.

Despite Hungary's questionable status in groups like the EU and NATO, which supposedly stand for free governments, there seem to be few inclined to kick it out of either organization. In fact, no member has ever withdrawn or been expelled from these groups. It is possible that expulsion of a wayward member could serve as a crucible for either organization, proving that membership is in fact dependent on adherence to the fundamental beliefs of each group. More likely, Hungary will remain a part of the organizations, as there seems to be little political will to make an example of Hungary or other wayward democracies like Turkey, no matter how troublesome they become. However, if Hungary continues to shy away from democracy, the matter might have to be reconsidered.

Although Hungary’s internet tax has been put on hold for now, it is probable that Prime Minister Orban will return to it eventually. Control of the press and information is critical to Orban's agenda, and maintaining this control was likely the purpose of the internet tax plan, making it necessary for his continued success. For now, however, Hungarian citizens and foreign observers alike must be content with the fact that the protests worked. In fact, they were so successful that Net Neutrality activists in the US are working on copying their methods for future use. In the US they won’t have to worry about an autocratic regime returning to unfavorable policies, but they might have to contend with low turnout at the protests. Hungary, at least, does not have to worry about that.

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Protests in Hungary Stymie Internet Tax Law