New measures announced by the government include waivers on personal income tax for women raising at least four children and subsidies for large families to buy bigger cars.
The new provisions give financial recognition to more than 10,000 mothers raising a large family. Biological, adopted and adult children are also taken into account in the evaluation of the tax benefit.
According to the Finance Ministry, about 40,000 women will be eligible for the maternity tax exemption next year, with a combined total of around HUF 20 billion.
State Secretary András Tállai revealed that contributions paid by individuals will be merged into a single social insurance contribution at a rate of 18.5 percent, and family allowances can be deducted from the total amount. As a result, the amount left for parents could be one and a half percent higher than before.
According to the state secretary, the new benefit will be a great help to families with a lower income. And it’s also worth mentioning that since 2010, the state has left hundreds of billions of forints in families’ wallets each year. Together with the new tax exemption, this amount could top HUF 380 billion next year.