Hungarian Prime Minister Announces Sweeping Tax Cuts and Policy Changes
Viktor Orbán unveils extensive proposals including lifetime tax exemptions for mothers and proposed restrictions on Pride events.
During a recent annual address, Hungarian Prime Minister Viktor Orbán outlined significant tax reforms and policy initiatives targeted primarily at families and social issues.
He specifically highlighted a proposal for full lifetime income tax exemption for mothers with at least two or three children, set to commence from October 2025 for mothers of three children and gradually from January 2026 for those with two.
In addition, Orbán reiterated plans to double tax allowances for children, effective from July 1 and January 1 of the following year, enabling parents to deduct up to 200,000 forints from their tax liabilities for three or more children.
This initiative is expected to impact over one million families.
Furthermore, income tax exemptions will be introduced for parental benefits such as child care allowances.
The Prime Minister stated plans to amend the constitution to specify gender as either male or female, drawing inspiration from similar actions by former U.S. President Donald Trump.
He suggested the potential ban on Pride events, indicating to event organizers that their efforts would be futile and viewed as wasteful.
Orbán's government will appoint a representative to investigate which organizations received funding from the United States over the past decade.
Following this review, the Prime Minister promised to establish legal frameworks to prevent 'shadow civil organizations' from serving foreign interests and to ensure compliance with national laws regarding previous offenders.
A new law is also being proposed, modeled after the Magnitsky Act, to restrict funding from international networks perceived as detrimental to Hungarian sovereignty.
Orbán expressed his intent for state bodies to uphold their responsibilities in protecting national interests.
The government is launching a '100 new factories' program, aimed at fostering industrial development, expansion, and job creation.
Orbán emphasized the necessity for the country to adapt to rapidly changing technologies, including challenges presented by artificial intelligence.
He announced the return of László Palkovics, former minister of technology, to assist in these efforts, although details of his new position remain unclear.
To address rising food prices, Orbán instructed Economy Development Minister Márton Nagy to negotiate with retail chains in an effort to halt price increases, threatening to implement price controls if agreements are not reached.
He stated, 'If it cannot be done amicably, then we will proceed with regulated prices.'
Other key announcements included:
- A VAT refund for seniors on fruits, vegetables, and dairy products in the latter half of the year.
- Hungary's opposition to Ukraine's EU membership aspirations.
- Amendment of the constitution to include the right to cash, a proposal previously initiated by the Mi Hazánk Movement.
- Granting rural municipalities the right to self-defense to preserve their identities and heritage against urban migrations.
- Implementation of asset declaration requirements for Hungarian Members of the European Parliament, aligned with domestic parliamentary regulations.
- An aggressive campaign against inexpensive and harmful synthetic drugs, with plans to appoint a governmental commissioner and introduce a zero-tolerance policy towards drug-related offenses.
He specifically highlighted a proposal for full lifetime income tax exemption for mothers with at least two or three children, set to commence from October 2025 for mothers of three children and gradually from January 2026 for those with two.
In addition, Orbán reiterated plans to double tax allowances for children, effective from July 1 and January 1 of the following year, enabling parents to deduct up to 200,000 forints from their tax liabilities for three or more children.
This initiative is expected to impact over one million families.
Furthermore, income tax exemptions will be introduced for parental benefits such as child care allowances.
The Prime Minister stated plans to amend the constitution to specify gender as either male or female, drawing inspiration from similar actions by former U.S. President Donald Trump.
He suggested the potential ban on Pride events, indicating to event organizers that their efforts would be futile and viewed as wasteful.
Orbán's government will appoint a representative to investigate which organizations received funding from the United States over the past decade.
Following this review, the Prime Minister promised to establish legal frameworks to prevent 'shadow civil organizations' from serving foreign interests and to ensure compliance with national laws regarding previous offenders.
A new law is also being proposed, modeled after the Magnitsky Act, to restrict funding from international networks perceived as detrimental to Hungarian sovereignty.
Orbán expressed his intent for state bodies to uphold their responsibilities in protecting national interests.
The government is launching a '100 new factories' program, aimed at fostering industrial development, expansion, and job creation.
Orbán emphasized the necessity for the country to adapt to rapidly changing technologies, including challenges presented by artificial intelligence.
He announced the return of László Palkovics, former minister of technology, to assist in these efforts, although details of his new position remain unclear.
To address rising food prices, Orbán instructed Economy Development Minister Márton Nagy to negotiate with retail chains in an effort to halt price increases, threatening to implement price controls if agreements are not reached.
He stated, 'If it cannot be done amicably, then we will proceed with regulated prices.'
Other key announcements included:
- A VAT refund for seniors on fruits, vegetables, and dairy products in the latter half of the year.
- Hungary's opposition to Ukraine's EU membership aspirations.
- Amendment of the constitution to include the right to cash, a proposal previously initiated by the Mi Hazánk Movement.
- Granting rural municipalities the right to self-defense to preserve their identities and heritage against urban migrations.
- Implementation of asset declaration requirements for Hungarian Members of the European Parliament, aligned with domestic parliamentary regulations.
- An aggressive campaign against inexpensive and harmful synthetic drugs, with plans to appoint a governmental commissioner and introduce a zero-tolerance policy towards drug-related offenses.
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