Hungary’s Populist Leader Scraps Income Tax for Under-25s to Support Recovery
Viktor Orban moves to help country recover from COVID
Hungary's conservative leader Viktor Orbán has scrapped income tax for under-25s in an effort to help the country recover from the coronavirus pandemic, form families, and discourage emigration.
The Hungarian parliament, where Orbán’s party, Fidesz, enjoys a supermajority, voted for the tax break by an overwhelming majority.
Hungarian minister for families Katalin Novak told Breitbart news “The Hungarian government is the government of tax reductions,” adding the Central European country has “the lowest corporate tax rate in Europe,” and that “thanks to the family tax system the more children parents have the less personal income tax they need to pay, and since January 2020, women with at least four children are exempt from paying [personal income tax] forever.”
Novak added the new tax exemption was “another move to reduce taxes on one hand, and on the other, it’s another sign of our commitment to helping young Hungarians realize their goals.”
To aid in reversing Hungary’s demographic decline, the Orbán government introduced policies aimed at assisting people who would like to form families without the use of mass migration.
The National Assembly has just adopted with an overwhelming majority the personal income tax exemption for young adults under 25. It will help young people in their transition to adulthood from 2022. pic.twitter.com/jRYFsYDh48— Katalin Novák (@KatalinNovakMP) April 28, 2021
Last year, Foreign minister Péter Szijjártó described Hungary's rejection of multiculturalism and mass migration as a resolution to market and demographic challenges.
Szijjártó explained how the country favors a more socially cohesive society along with 'pro-family policies that support local people to 'upskill' and raise their own families.
“We have made it very clear during the debate in the European Union that we do not consider migration as a proper answer to our challenges regarding demography or our challenges regarding the labor market,” he said at the time.
Minister Novak noted Hungary’s “comprehensive support system at the disposal of youngsters” already includes such policies as a “baby-expecting subsidy which provides a €28,000 (£24,000/$34,000) interest-free, general-purpose loan for young couples, which they don’t need to pay back when the third child arrives.
Minister Novak recalled that Hungary’s “comprehensive support system at the disposal of youngsters” already includes such policies as a “baby-expecting subsidy which provides a €28,000 (£24,000/$34,000) interest-free, general-purpose loan for young couples, which they don’t need to pay back when the third child arrives” and the suspension of student debt repayments for women while they are having children, and the outright canceling of debts for women who have at least three children.
The exemption from personal income tax payments is also meant to help women who focus on family rather than a career.
“We think that in these challenging times, this measure will strengthen the youth and facilitate the process of starting a family, entering the labor market, accessing to their own homes, or completing their studies,” Novak concluded.
He also added it is “creating opportunities [for young people]; it’s their choice how they use them."