Hungary to Abolish Telecommunications Tax and Utility Tax Payments

The Hungarian government has confirmed plans to eliminate the supplementary telecommunications tax by January 2025. Additionally, it intends to abolish the utility tax payment requirement for electronic telecommunication providers starting from January 2024. These changes are aimed at supporting Hungary’s digital transformation.

These announcements were made during the signing of a memorandum of understanding (MoU) between the Hungarian Government and Magyar Telekom. The MoU focuses on strengthening their collaboration for the digital development of Hungary.

Magyar Telekom’s CEO, Tibor Rékasi, expressed the company’s commitment to Hungary’s digital progress, stating that their main goal is to provide opportunities for citizens, businesses, and large companies to participate in the digital world. Magyar Telekom plans to achieve this through investments, network development, and educational programs. The government’s intentions align with Magyar Telekom’s mission, and they aim to forge a strong and long-term partnership in pursuit of these goals.

Márton Nagy, the Minister of Economic Development, emphasized the Hungarian government’s priority of increasing productivity and competitiveness in the economy. Accordingly, they believe it is crucial to support investments that contribute to the development of the Hungarian economy.

Timotheus Höttges, CEO of Deutsche Telekom, highlighted his company’s role as a digital partner for citizens in a digital society. With fair market conditions, Deutsche Telekom can increase investments in new generation networks and modern technological infrastructure. Through these investments, Deutsche Telekom is eager to play a significant part in further digitalizing Hungarian society.

These policy changes signify Hungary’s commitment to fostering a digitally advanced country and encouraging economic growth through digital transformation.