Lawmakers on Wednesday passed legislation which exempts the income of Hungarians under the age of 25 from personal income tax. Under the law adopted with 166 votes in favour and one against, people under 25 will not have to pay PIT for wages below the gross average wage.
The measure will cost the budget 130-150 billion forints (EUR 357m-413m) annually. Also, newlyweds will be eligible for
new family tax benefits after they turn 25.
As we reported before, MPs debated the issue in March and the minister for family affairs who submitted the bill said in the opening speech that, if passed, the law would
increase the income of young people by around 22 percent.