The prime minister’s commissioner for a national consultation on digital development will propose lowering the VAT rate on internet services to 18% from 27%. “We will put concrete proposals on the government’s table by mid-November,” said Tamás Deutsch, who is also an MEP of governing Fidesz.
The proposal will be made on the basis of the national consultation on the internet. The government must naturally decide on the financial as well as the political viability of such a measure, he said. Deutsch said he would also propose providing a basic internet package at preferential rates to underprivileged Hungarians. The matter of who would be eligible and who would subsidise the preference is still a question, he added.
Last November, following a massive demonstration over a planned internet tax, Tamás Deutsch said the national consultation on the internet would concern how to maximise freedom for net users and ensure the widest and cheapest access. In May he already told the Media Hungary conference that VAT on internet subscriptions, the special telco tax or the utilities tax on broadband networks could be reduced from the start of 2016.
sourece: hungarymatters.hu and internetkon.hu photo: photo: internetkon fb page