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Hungarian internet tax could fall from 27% to 18% in 2016

12 May 2015

Hungary could cut the VAT rate applied to internet subscriptions from 27% to 18% as of January 2016, according to reports by Daily News Hungary, citing online paper Napi Gazdasag. The 9% reduction would only be applied to telcos involved in the deployment of an ‘ultra-fast’ broadband network, with the government expected to inject HUF150 billion (USD550.9 million) to boost the deployments. A sector-based tax on telecoms providers could also be phased out, echoing ongoing plans to reduce the utilities tax on the country’s banks. Currently, telcos pay a utilities tax based on network size, and a telecoms tax based on calls and text messages.

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