Viktor Orbán sees that the high food prices are destroying people.Continue reading
Following Wednesday’s cabinet meeting, the government’s latest measures were presented by Gergely Gulyás, Minister in charge of the Prime Minister’s Office, and Eszter Vitályos, Government Spokeswoman, on Thursday. The agenda of Wednesday’s meeting included the measures announced by Viktor Orbán in his annual assessment speech on Saturday, such as the multi-part tax reduction program for mothers, the income tax-free infant care allowance (CSED) and childcare allowance (GYED), as well as the VAT refund program for pensioners.
“In his annual assessment speech on Saturday, the Prime Minister announced a year of breakthroughs, both political and economic. This requires the implementation of Europe’s largest tax reduction program,” the details of which were discussed by the government on Wednesday, Gergely Gulyás said.
As announced earlier, the tax reduction for women having children will be increased and all mothers up to the age of 30 will be exempt from paying personal income tax,
the minister noted.
Photo: MTI/Bodnár Boglárka
From October 1, 2025, mothers with three children will not have to pay income tax. This will affect around 250,000 mothers. For mothers of two, the tax exemption will be phased in over four years in a graduated, ascending system according to age.
Mothers of two children under 40 will become exempt from 2026. This will affect 120,000 mothers. Those aged between 40 and 50 will become exempt from 2027, affecting approximately 210-220,000 women. This will be followed by those aged 50-60 from 2028, with around 230,000 affected. For mothers of two children over 60, the tax exemption will be introduced from 2029, with 110,000 women affected. This will complete the benefits of having children in the Hungarian tax system, the minister emphasized.
Infant care allowance and childcare allowance will be exempt from social security contributions from July 1,
Gulyás announced. In two stages, from July 1, and then from January 1, 2026, the tax credit for having children will be doubled. This will increase to HUF 80,000 (EUR 200.25 / EUR 1 = HUF 399.51) per month for two children and HUF 198,000 for three or more children. The doubling of the personal income tax exemption and the family tax allowance will mean an extra HUF 130,000 per month for families with two children and HUF 190,000 per month for families with three children.
The minister also announced an action plan to curb food prices.
Market protection and profit restraints will be introduced, and the bureaucratic burden on the companies concerned will be reduced.
If the measures do not produce results by spring, a price freeze will be introduced.
The government has authorized Minister for National Economy Márton Nagy to implement the VAT refund scheme for pensioners. In response to a question, Gulyás confirmed that refunds will be made through a card-based system, with the details to be worked out by the Ministry for Economy and presented to the government. He added that if the government had introduced a VAT cut, experience so far shows that the profit would have remained with the retailers.
The measure is estimated to mean an extra HUF 5,000-10,000 per pensioner a month.
On Wednesday, the government also discussed the USAID issue. The minister called it the biggest corruption scandal in the western world, the biggest attempt to influence the government, and a violation of sovereignty. The misuse will be investigated with the help of a government commissioner, András László MEP, who has been appointed for this task.
A report will be drawn up on who received what resources, who exercised what influence, and what the aims behind the attempts at influence were. It will be revealed how and for what purpose the money was used,
said Gulyás.
The government also discussed the amendment to the Fundamental Law. The new amendment stipulates that a man is either a woman or a man. Another amendment concerns the settlement protection program: local communities will have the right to decide with whom they want to live. The constitution will also include a ban on drug use, as well as the rights of children involving their physical, mental, and emotional development.
“We see that the drug situation has deteriorated, which is why the Prime Minister expects government commissioner László Horváth to take action on the matter. Deterrent rules must be put in place,” the minister pointed out. In response to a question, he added that the government commissioner’s reports would be made public.
Via Magyar Nemzet, Magyarország Kormánya; Featured image: Pexels
