That follows a week of protests against the proposed move, which would have had the Hungarian government charging a fee on every gigabyte of data downloaded.
The initial plan was to have charged 150 forints (40 pence) per gigabyte but PM Viktor Orban was forced to back off from that plan.
Instead the government was going to introduce a tax rate of 700 forints a month for individuals while companies were going to be charged 5,000 forints a month.
The protestors weren’t just furious at the tax but were worried the move was undemocratic.
Orban’s party holds a two thirds majority in the Hungarian parliament