A new family tax refund will affect nearly two million parents and create more than 600 billion forints (US $1.84 billion) in benefits, Minister of Finance Mihály Varga announced on social media.
The refunds will be automatic, with most parents not having to do anything to receive them. However, parents whose data is not on file at the tax authority or those in certain categories will have to apply by December 31, Mihály Varga said in the video. All working parents raising children will have their personal income tax paid this year returned to them by February 15, 2022.
Prime Minister Viktor Orbán had already announced this policy in a speech to Parliament in September. The government had previously linked a tax refund to economic growth, specifically if GDP grows by at least 5.5% this year. However, it appears likely that the Hungarian economy will exceed that number.
Last week, the Cabinet of Ministers decided on a 750 billion Ft. tax cut and on cutting employment taxes in 2022.