One of the leading banks in Hungary, K&H, has disbursed more than HUF 225 billion in baby-expecting loans over the past three and a half years.Continue reading
The new family policy measure, in effect since January 1 helping women between the ages of 25 and 30 with children, could result in a yearly tax savings of up to HUF 900,000 (EUR 2,270) if one is eligible, Világgazdaság reports.
A year ago, the personal income tax exemption for under-25s came into effect, and from this year on, women under the age of 30 who have children will no longer have to pay income tax either, the economic website pointed out, quoting government spokeswoman Alexandra Szentkirályi. The article added that according to Ágnes Hornung, Secretary of State for Families at the Ministry of Culture and Innovation,
the new element of the family tax system could affect tens of thousands of mothers with income.
Young mothers who gave birth before January 1 will not get the benefit, but if they have another child up to the age of 30, they will, and the personal income tax exemption for mothers with four or more children will continue for the rest of their lives, the article said. Világgazdaság also recalled that from January 1, the government will waive the full student loan debt for women under 30 who give birth or adopted a child during their studies or within two years after finishing them.
András Tállai, the Parliamentary Secretary of State of the Finance Ministry, recently said that Hungary’s family tax system provides significant tax relief at the third lowest personal income tax rate in Europe, thereby rewarding those who raise children while working.
According to the last closed tax year, this left a total of more than 310 billion forints (EUR 768 million) in families’ pockets in 2022, with 900,000 parents claiming family tax allowances.
The government official also remarked that as part of the family protection measures in response to the epidemic, families with children were refunded last year a certain part of the personal income tax, simplified tax contribution, and small-taxpayer business tax paid in 2021.
Featured photo via Pixabay