Janos Fonagy, state secretary at the Ministry of National Development, says the aim is to make Uber's activities "impossible in Hungary."
Fonagy, speaking today after meeting with representatives of 16 taxi companies and transportation organizations, said Uber was "consciously and cynically breaking every Hungarian law."
Fonagy said parliament was expected to approve government proposals later this month increasing penalties for unlicensed drivers and banning apps like Uber for up to a year.
Taxi drivers have held several demonstrations against Uber and unlicensed drivers, slowing traffic in Budapest and petitioning authorities to crack down on the US company, whose European headquarters are in Amsterdam.