VAT on internet services will drop to just 5 percent from January 1st, the government has announced.
The economy ministry said that the 13 percentage point drop - from the current 18 percent - is expected to leave 22 billion HUF (70 million EUR) in the pockets of consumers.
In January 2017, VAT on internet services was reduced from 27 percent to 18 percent, and the further drop is set to give a huge boost to consumers.
Tamás Deutsch, Prime ministerial commissioner for the Digital Welfare Programme, said that reducing the price of internet services to a record low level is likely to result in tens of thousands or possibly a hundred thousand new subscribers for service providers.
According to MTI, as a result of the VAT cuts and the introduction of a basic package, the price of internet services will have dropped by 35 percent in January.
The National Media and Infocommunications Authority (NMHH) said that special attention will be paid to ensure that the new regulations affecting internet services are observed by providers.