Tax concern for Hungarian cablecos

October 26, 2012 10.57 Europe/London By Chris Dziadul

Hungary’s cable industry looks set to be hit by a proposed new utility tax.

According to Nepszabadsag and Portfolio, the government is considering extending it from underground ducts and pipes to also include overground cables, wires and pipes.

The tax, which is likely to come in next year, would provide the state with revenues of HUF30 billion (€107 million) for underground infrastructure, while the extension would bring in an additional HUF30-40 billion.

Hungary’s cable industry is dominated by UPC, T-Home and Digi, with Invitel, Tarr, PR-Telecom and ViDaNet among the other leading players.