Lawmakers on Monday approved amendments to legislation necessary for the expansion of government measures supporting families with children.
The amendments were approved with a vote of 176 for, 10 against and 6 abstentions.
The changes allow the rollout of an interest-free general purpose loan up to 10 million forints (EUR 31,100) for married couples who commit to having children.
Repayments on this loan will be suspended for three years after the birth of the borrower’s first child. After the birth of a second child, repayments will be suspended for another three years and one-third of the principal will be paid for by the state. After the birth of a third child, the state will take over all of the loan’s principal.
The measures also include government grants up to 2.5 million forints for purchases of new, seven-passenger vehicles for families with at least three children.
The amendment also affects the law on personal income tax, allowing for the PIT exemption of the preferential loan and the Hungarian government subsidies provided for the vehicle purchases.
The law is set to come into effect on July 1.
Additional measures of the family protection action plan include write-offs of outstanding mortgage credit linked to the birth of children, an exemption from the personal income tax for women who have four children, an extension of interest subsidies on home loans to the purchase of resale homes, and subsidies for home purchases and renovations in villages with declining populations.
As we wrote on February, the population of Hungary declined by 41,300 in 2018 as a net result of 89,800 live births and 131,100 deaths during the year, the Central Statistical Office (KSH) said, read more HERE.