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Parliament approves 2018 tax package

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The Hungarian Parliament approved a package of tax changes that will reduce the VAT rates on internet services, fish and pork innards to 5% next year, among other changes, state news agency MTI reported.

Among the items on the legislative package, those offering homes as commercial accommodation will be able to choose the simplest and most preferential itemized tax on up to three flats or holiday homes, set at an annual HUF 38,400 per room.

The law will also exempt revenue from rent over an annual HUF 1 million from the 14% health contribution, taxing it only at the 15% rate on personal income.

The law will also raise tax preferences for employee accommodation support with the aim of improving workforce mobility.

VAT on internet services will be reduced by a further 13 percentage points to 5% in 2018.

VAT on fish will likewise be cut to 5%, which the government hopes will result not only in savings, but also greater consumption. The same preferential VAT rate will also be applied to pork innards.

The package was approved with 152 governing coalition and Jobbik MPs voting in favor, and 40 voting against.

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