Orban Announces Tax Reduction Policy Ahead of General Election
Mortgage Interest Rates to Be Capped at 5% Starting April Next Year
Hungary is promoting a tax reduction policy that exempts income tax for women who have two or more children.
On the 22nd (local time), Bloomberg and other foreign media reported that Hungarian Prime Minister Viktor Orban announced policies to prevent the decline in birth rates and stimulate the economy ahead of next year's general election.
From October this year, families with three children will be exempt from income tax, and from January next year, the benefit will be expanded to families with two children. Starting in April, mortgage interest rates will be capped at a maximum of 5%.
He also stated that if negotiations to control retail and food prices fail, the government will step in to introduce price ceilings and, in the worst case, limit food retail profits. Hungary has recently experienced rapid inflation with consecutive increases in food, fuel, and service prices.
On the day, Prime Minister Orban said, "We will announce the largest tax cut program in Europe," adding, "It will cost a tremendous amount, but it will have the effect of economic recovery, saving businesses, creating jobs, and reducing fiscal deficits and public debt."
Meanwhile, Prime Minister Orban also clearly expressed opposition to Ukraine's accession to the European Union (EU). He said, "If Ukraine joins the EU, Hungary's economy will be destroyed," and "As long as it goes against Hungary's interests, Ukraine's membership in the EU can never happen."
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