Utility Price Cuts and Sector-Specific Taxes in Network Industries
Utility Price Cuts and Sector-Specific Taxes in Network Industries

Author(s): Iván Major
Subject(s): Politics, National Economy, Present Times (2010 - today), Public Finances, Sociology of Politics
Published by: Central European University Press
Keywords: Hungary;taxes;Fidesz;Orban;Tobacco Shops;Utility Price Cuts
Summary/Abstract: The petition opened with the question: “Would you like to pay 10 to 20% less for electricity, gas, water consumption, and sewage treatment?” “Of course,” replied millions of Hungarians. “Are you in favor of the government passing on Hungary’s accumulated debt to banks, telecommunications firms, and commercial networks by levying sector-specific taxes instead of reducing debt with your direct contribution, for instance by hiking value added tax on goods and services?” Once again, the reply was are sounding “Yes.” But if the following were added to the petition: “Do you accept that in the wake of the price cuts and sector-specific taxes suppliers will turn a loss and be compelled to cut staff, stall network development projects and, ultimately, reduce the quality of electricity, gas, water supply,etc.?,” it would spark outrage. Likewise, if suppliers added on more and more charges to cover their losses, broad disgruntlement would certainly ensue. These questions and findings are not mere figments of the imagination,but the current reality in Hungary.

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