Family tax allowances to be expanded

Family tax allowances will also be deductible from the 7% health and 10% pension contributions, which will especially serve the interests of low-income families, Government Spokesperson András Giró-Szász stated, commenting on 2014 tax laws on Friday.

He said the change would enable low-income families to save on taxes and contributions the equivalent of 33% of gross wages, as against the current 16%. The Government has designed the new tax allowances to encourage family planning and having more children, Mr Giró-Szász emphasised. The family tax allowance will be extended to affect an additional 260,000 families, he pointed out.

The Spokesperson stated that a total of 900,000 Hungarian families or nearly 5 million citizens would be able to benefit from the tax allowance. The structural reform of Hungary’s tax system has been completed, so 2014 will be dedicated to fine-tuning, he added.

Source: Prime Minister’s Office