Internet Tax on Horizon in Hungary

October 22, 2014 Taxation in Hungary

BUDAPEST – Internet access in Hungary is expected to become significantly more expensive, as the government plans to implement a usage-based tax on internet access.

At a press conference held on October 21st the Economics Minister of Hungary Mihály Varga announced a new proposal to levy a tax on internet access in the country at a rate of HUF 150 for each gigabyte used by a user.

Currently no taxes are levied on internet access, but a tax is applied on each minute of phone calls made, and also on each SMS message sent, and the Minister explained that the new tax has been proposed as an increasing amount of communication and messaging is now done not through traditional telephone or mobile networks, but via online applications.

The tax is expected to raise as much as HUF 20 billion per year in extra tax collections, however, some technological experts have already estimated that the tax take could be as much as HUF 95 billion.

Taxpayers in Hungary have come forward to protest the tax, claiming that it will limit internet usage and access to online tools, facilities and information.

Photo By: Ministerio TIC Colombia