Hungarian government to give families € 1.7 billion worth of tax rebates?

Finance Minister Mihály Varga revealed details of tax rebates for parents raising children in a video message posted on Facebook on Friday.

Varga said the rebates to be paid early next year would go to all parents eligible for family benefits. If both parents in the family are registered with an employer, they will both get the personal income tax rebate, he added.

Parents who earn their incomes as sole proprietors, subsistence farmers and landlords, or who pay the Itemised Tax for Small Businesses (KATA) or the Simplified Contribution to Public Revenues (ekho), will also be eligible for a tax rebate, he said.

KATA taxpayers will get a 25 percent rebate, while ekho taxpayers will get two-thirds of the 15 percent they pay back, he added. The rebates are limited to the tax paid on income up to the average wage.

Some 1,900,000 parents are expected to get 600 billion forints (€ 1.7 billion) in rebates under the government measure, conditional on GDP growth reaching 5.5 percent this year.