Government could lower VAT on internet

Banking

The Hungarian government is planning on reducing the VAT rate from 27% to 18% on internet subscriptions as of next January, Hungarian economic daily Napi Gazdaság reported today. The paper added that the tax could be reduced as of 2017, if a superfast broadband network is established. The government may even contribute HUF 150 bln to the project, the paper added.

According to the paper, sectoral taxes levied on telecommunications companies in Hungary could also gradually be phased out. Hungarian news agency MTI noted that telcos in Hungary pay the utilities tax according to the size of their networks, based on calls and text messages.

At the end of October, approximately 100,000 protesters – Reuters estimates – marched on the streets of Budapest in response to the Hungarian government’s proposed levy of an extraordinary tax on internet service providers. The proposal received criticism from the European Commission and the demonstration hit international news. Finally, Hungaryʼs Economy Ministry shelved the idea.

ADVERTISEMENT

Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.