Taxes on accommodation services may be reduced

The high 18 percent Hungarian VAT rate undermines the profitability of market participants, but according to a new government decision VAT could be reduced on the domestic accommodation market.

Könnyid László, President of the Association of Hungarian Hotels and Restaurants, told M1 news channel on Friday that the government wants to increase tourism’s contribution to GDP by 10-16 percent over the next 12 years, but VAT must be reduced to reach this goal – he adds. (MTI)