Lawmakers have passed legislation which exempts the income of Hungarians under the age of 25 from personal income tax (PIT).
Under the new law, people under 25 will not have to pay PIT for wages below the gross average wage. The measure will cost the budget HUF 130-150 billion (EUR 357m-413m) annually. Newlyweds will also be eligible for new family tax benefits after they turn 25.
The law was adopted with 166 votes in favor and one against.
The minister in charge of families said that with the PIT exemption, the government aims to get more young people to work and make it easier for them to start living independently, adding that as part of the economic restart action plan, the government would further expand support for young people.
Thanks to the family support scheme, "it is easier to plan for the future in Hungary today than it was 10 years ago," Katalin Novák underlined.