Lawmakers passed the bill on family farms on Tuesday that eases taxes and cuts red tape for many farmers while providing “a working environment in line with 21st century expectations,” István Nagy, the minister of agriculture, said in a statement after the vote.
The new legislation aims to shore up family farms, support generational handovers and encourage cooperation between producers, the statement said.
From 1st January, the tax exemption threshold will be raised for small producers, with personal income tax dropped for income equal to five times the annual minimum wage – this year worth 9.7 million forints (EUR 27,000). Other measures to ease the tax burden on farm producers are also included in the legislative package.
Income from activities related to farming, such as rural tourism and the agricultural services, will also be subject to various tax breaks. Under the new law, primary producers can form a family farm, presenting opportunities for joint farming by at least two related farmers.
In addition, the law contains tax breaks for beekeepers with a view to helping protect biodiversity, the statement said.