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Hungary freezes Internet tax plan

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A proposed Internet tax in Hungary has been put on hold. Hungary's government was going to impose a tax on Internet traffic. It faced huge opposition from the public and businesses. The government announced it had frozen the plans following huge street protests in the capital Budapest. It also took heed of warnings from the European Union that the tax would be a mistake. The climb-down was broadcast on radio on Friday. Hungary's leader said: "If the people not only dislike something but also consider it unreasonable, then it should not be done."

Hungary's U-turn is not yet a victory for the people. The idea has not been scrapped altogether. There will be consultations in January next year to investigate how to generate tax revenue from the Internet. The government said it would have to be different in nature to the one it just put on hold. That one involved a 60-cent tax on every gigabyte of data consumed. Critics were worried this would limit freedom of expression and hurt online companies. Citizens will continue to campaign for a tax-free Internet. Their Facebook page already has more than 250,000 Likes.