Economy
Hungary plans to slash VAT on Internet services to 5% as of 2018
Deutsch said the programme, which was conceived with support by some 100 experts, will be up for debate over the next two to three months, and he expects the cabinet to approve the final scheme already before the summer.
He underlined that the VAT reduction on Internet services, consumer prices in fixed-line and mobile Internet services could drop by additional 15%, adding that the VAT reduction lived up to expectations and consumer prices did decrease.
The VAT rate on Internet services was reduced to 18% from 27% as of 1 January 2017 and cutting it further to 5% in 2018 was only a possibility.
Although the European Commission is of the view that Hungary may not lower VAT on Internet services, the government insists, Deutsch said in September last year.
He underlined that the VAT reduction on Internet services, consumer prices in fixed-line and mobile Internet services could drop by additional 15%, adding that the VAT reduction lived up to expectations and consumer prices did decrease.
The VAT rate on Internet services was reduced to 18% from 27% as of 1 January 2017 and cutting it further to 5% in 2018 was only a possibility.
Although the European Commission is of the view that Hungary may not lower VAT on Internet services, the government insists, Deutsch said in September last year.
