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Jun 03, 2019

FM: Hungary’s 2020 budget will be geared towards families

Mihály Varga said the government will next week submit to parliament a family-friendly budget with the aim of reversing the declining population.

The Finance Minister has said that Hungary’s 2020 budget will be geared towards families.

During an interview on public radio on Sunday, Mihály Varga said the government will next week submit to parliament a family-friendly budget with the aim of reversing the declining population.

The Minister said the “family budget” will be helpful for families, people having children and teachers in numerous ways, providing security and support.

Minister Varga added that from next year, people in small localities will benefit from a measure that will enable them to recover invoiced VAT on renovations, extensions and construction of real estate of up to 5,000,000 HUF (15,300 EUR).

The Minister highlighted that in practice, this means that, coupled with the government’s family home-renovation scheme (called Village CSOK), VAT on construction costs of around 30 million HUF can be written off altogether.

Minister Varga also announced new measures for companies with a turnover of more than 100 million HUF, which will be the elimination of the December 20th deadline for tax payments. Full taxes will only be paid in May when tax returns are declared.

The Minister also noted that social contribution tax will fall by 2 percentage points and the small business tax will decline from 13 percent to 12 percent.

Photo credit: vg.hu