"Tax reduction for family growth" - press conference at KINCS
"Tax reduction for family growth" was the title of a press conference held at the Kopp Mária Institute, where Balázs Hankó, Minister of Culture and Innovation, provided information on the personal income tax exemption for mothers and the doubling of the family tax allowance in two stages, while Tünde Fűrész, President of KINCS, presented the results of the Institute's latest research on the social support for government measures to strengthen families.
Balázs Hankó underlined that tax reduction is one of the most powerful tools to support families, which is why the most significant tax reduction programme in Europe has been announced in Hungary, which is also being applauded in America. The Minister pointed out that since 2010, families have received 4,500 billion forints in tax relief, and thanks to the new measures, families will receive an additional 500-550 billion Forints more.
At the same time, a tax reduction programme of further HUF 4,000 billion in will be implemented in the coming years, as follows:
- From 1 July, the family tax allowance will be increased by one and a half times, and will be doubled next year.
- With the personal income tax exemption of the infant care fee, mothers will receive an extra HUF 78,000 monthly, which means almost half a million forints in support over six months.
- Parents eligible child care fee will receive HUF 43,000 more monthly, which is nearly HUF 800,000 for the whole period of parental leave.
- From 1 July, the Infant Care Fee Extra will be introduced, allowing mothers to claim infant care fee while also being eligible to working after the age of 3 months of the child
- A lifetime personal income tax exemption is introduced for parents with two or three children. An average-earning mother of two will be able to take home HUF 109,000 more monthly, which, together with the family tax allowance, means a monthly saving of HUF 189,000 and an annual saving of HUF 2.270 million.
- Mothers of three, together with the family tax allowance, receive HUF 307,000 a month, which means HUF 3.686 million a year.
Tünde Fűrész presented the results of a survey exploring what proportion of the society is aware of the latest tax reduction measures and what they think about them. The president of KINCS said that the elements of the family tax reduction programme have a high level of social support. Nine out of ten people have heard about the introduction of the personal income tax exemption for mothers of two and three children, and the highest proportion (86%) agree with the introduction of the personal income tax exemption for infant care fee and child care fee. Two thirds of respondents are most affected by the doubling of the family tax allowance, and the biggest help for families concerned is the personal income tax exemption for mothers of four or more children and mothers of three. The tax reduction measures were typically most favourably received by a higher than average proportion of women, those under 30 and over 65, those living in small towns and villages, large families and those with young children.
