Hop On Hop Off tours will be much cheaper in Hungary?

The Hungarian government decided to reduce the VAT on Hop On Hop Off tours in Hungary. However, they will probably not become cheaper.

According to 24.hu, a recently published government decree significantly reduced VAT (value-added tax) on Hop On Hop Off tours. In Hungary, the general VAT rate is 27 percent, one of the world’s highest. Northern European countries and Greece are comparable with the Hungarian rate but are still below it by 2-3 digits.

From 23 May, such tours will have to pay only 5 percent VAT, which is a considerable reduction. But Hop On Hop Off tours will have to pay tourism development contribution. Thus, the state will take some of the remaining “extra profit”. The new rules apply only to those service providers which enable only electronic payment for their passengers.