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Mar 03, 2017

Hungary to reduce VAT on internet access to 5 percent

The Hungarian government is also planning to establish a 5G coalition sometime during the summer, which could make Hungary one of the first European centers of 5G development

Hungary is planning to reduce VAT on internet access to just 5 percent in 2018, it has been revealed.

“The VAT on internet access will be reduced to 5 percent from January 1, 2018, according to the 2017-2018 schedule of the Digital Prosperity Programme (DPP)," Tamás Deutsch, Prime Ministerial Commissioner for the DPP, has announced.

During the opening ceremony of the Evolution – Two days of Online Evolution conference, the commissioner said that the reduction in VAT could lead to a further 15 percent reduction in ADSL and mobile internet access, in view of the fact that this year’s VAT reduction from 27 percent to 18 percent has lived up to expectations and prices have fallen.

The Hungarian government is also planning to establish a 5G coalition sometime during the summer, which could make Hungary one of the first European centers of 5G development. The activities of the 5G coalition are linked to the test track for self-driven vehicles, which is being developed in Zalaegerszeg and will be the headquarters for the sector’s research & development.