The European Commission has requested Hungary to abolish specific turnover tax on telecoms operators introduced in October 2010. The Commission considers this tax illegal under EU telecoms rules because revenue from the taxes is used for the Government's central budget and not for meeting the specific costs of regulating the telecoms sector.

The Commission's request to Hungary to abolish the telecoms tax takes the form of a ‘reasoned opinion’ under EU infringement procedures. Hungary now has two months to inform the Commission of measures taken to comply with EU telecoms rules. If it fails to do so, the Commission may refer Hungary to the EU's Court of Justice.

EU telecoms rules, in particular Article 12 of the Authorisation Directive, lay down precise provisions relating to the administrative charges that Member States can levy on operators authorised to provide telecoms services and networks.

In March 2011, the Commission also referred Spain and France to the EU's Court of Justice for levying charges on telecom operators in breach of EU telecoms rules.