Cabinet Chief János Lázár yesterday agreed with Andreas Ludas, Regional VP of RTL Group, that if RTL's Hungarian station, RTL Klub, agrees to soften its criticism of the government in their news show, Hungary's advertisement tax will be capped at 5% of revenues, online daily Népszava reported today, citing an unnamed source.

The advertising tax, established in June and apparently aimed at RTL Klub, is currently capped at 50% for those in the top bracket. RTL Klub is the only media outlet in that top bracket. An informant from the Berlin meeting between Lázár and Ludas reportedly told Népszava that the proposed amendment to the ad tax has already been sent to the legal office of RTL Klub.

The current negotiations were preceded by negotiations of the two in Budapest last week and did not include the current CEO of RTL, Dirk Gerkens, according to Népszava's report.

Another online daily, nol.hu, reported that their source said the government suggested that, if Gerkens leaves RTL Klub, the top ad tax bracket would be reduced to 5%.

Népszava's informant said the government is also abolishing a restriction that prevents TV channels from collecting program fees from TV service providers, a measure that has reportedly cost RTL Klub HUF 6-8 billion in revenue.

Népszava reported that Lázár arrived at the negotiations possessing confidential documents regarding the business life of Ludas, thereby putting pressure on the German businessman.

The government has been openly hostile toward RTL Klub, and the tax was widely seen as a way to silence, or punish a critical voice. Since the tax was levied, RTL Klub has increased its negative coverage of the government, and enjoyed a massive growth in viewership of its news programs.