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 CEE
Hungary plans to scrap telecom tax
 18 Sep 2023
The Hungarian government has announced its plans to abolish the supplementary telecommunications tax from January 2025. This decision was made to support the country’s digital transformation. Additionally, the government will also eliminate the utility tax payment obligation of electronic telecommunication providers from January 2024. These moves were announced during the signing of a memorandum of understanding (MoU) between the Hungarian Government and Magyar Telekom, aimed at strengthening their cooperation for the digital transformation of Hungary.

Magyar Telekom’s CEO, Tibor Rékasi, emphasized the company’s commitment to Hungary’s digital development. He stated that Magyar Telekom plays an important role in making the benefits and opportunities of the digital world available to citizens and businesses. The company aims to provide opportunities for individuals, businesses, and large companies to enter the digital world through investments, network developments, and educational programs.

The Minister of Economic Development, Márton Nagy, highlighted the government’s priority of increasing the productivity and competitiveness of the economy. Supporting investments that contribute to the development of the Hungarian economy is crucial in achieving this goal.

Timotheus Höttges, CEO of Deutsche Telekom, expressed their role as the leading European telecommunications provider and the digital partner for citizens of a digital society. With fair market conditions, Deutsche Telekom can invest more in new generation networks and modern technological infrastructure. Through these investments, the company can contribute to the further digitalization of Hungarian society.

Overall, the Hungarian government’s decision to abolish the telecommunications tax and support telecommunication providers aligns with their objective of promoting digital transformation and increasing the country’s competitiveness.
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