Hungary has decided to shelve a proposed tax on internet data traffic after mass protests against the plan.
“This tax in its current form cannot be introduced,” Prime Minister said on Friday.
Large-scale protests began on Sunday, when demonstrators hurled old computer parts at the headquarters of Mr Orban’s ruling Fidesz party.
The draft law – condemned by the EU – would levy a fee on each gigabyte of internet data transferred.
The protesters objected to the financial burden but also feared the move would restrict free expression and access to information.
The levy was set at 150 forints (£0.40; 0.50 euros; $0.60) per gigabyte of data traffic.
After thousands protested the government decided to cap the tax at 700 forints per month for individuals and 5,000 forints for companies. But that did not placate the crowds.