Lower Utilities Tax For Network Investments In Hungary Possible
- 13 May 2015 9:00 AM
A reduction in the utilities tax should be considered if internet service providers build new networks or upgrade their existing ones, state secretary for info-communications, Ákos Kara, said. Hungary is back on the path of economic growth, thus the government will weigh the possibility of reducing some tax burdens next year, Kara said.
He said he would support a review of the utilities tax that would allow not only for a reduction but an exemption if ISPs build new networks or modernise existing ones. In the case of modernisation, a preference would only be allowed if network speed was brought up to 100 Mbit/s, he added.
The developments would cut the cost of internet use for Hungarians, he said. Kara was responding to a question by an MP of radical nationalist Jobbik on reports the government planned to cut the VAT rate on internet services.
Daily Napi Gazdaság said on Friday that the VAT rate on internet services could be cut from 27% to 18% next January. It also said the utilities tax could be reduced from 2017 on the condition ISPs invest in their networks.
Source www.hungarymatters.hu - Visit Hungary Matters to sign-up for MTI’s twice-daily newsletter.
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