Report: Reduced internet service VAT could lower budget revenues
The planned reduction of VAT on internet service from 27% to 18% is expected to reduce budget revenues by an annual HUF 12-13 billion, Hungarian economic daily Világgazdaság reported today, citing calculations made by the National Economy Ministry.
Following a national consultation on the internet, which was the result of demonstrations triggered by the government’s plans to tax internet usage, the government announced that it would lower the VAT rate on internet services to 18%.
According to the paper, the biggest internet service providers in the country estimate the VAT reduction will save consumers HUF 300-700 a month on their bills.
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