PM Orban: A Family-Friendly Tax Revolution Is Taking Place in Hungary + Video

In such cases, it’s time to pack up, thank people for their trust, and go home, Hungary's prime minister said speaking about the leadership in Brussels. PM Orban also spoke about home creation and family support schemes, and the tariffs agreement between the EU and the United States.

Hungarian Prime Minister Viktor Orban (Photo: MTI/Prime Minister’s Press Office/Vivien Cher Benko)

"Since Covid, there has been a lot of trouble and uncertainty in the world. We’re facing the Russia–Ukraine war, the American tariff war came into play, robots, and now artificial intelligence. This environment causes even greater difficulties for young people.  Who knows how long they’ll drift in the world," Prime Minister Viktor Orban began his weekly Friday morning interview on Kossuth Radio.

This is a serious challenge, he continued,  young people are struggling with it, and the government is trying to help them create their own homes. One approach in Europe is renting, but for Hungarians, owning property symbolizes freedom and security.

This is important because it provides a place to start a family, and Hungarians, as property owners, are part of a national community. The slogan of the program is ‘Get started,’ it’s an opportunity, an offer,

 said the Hungarian prime minister.

The Government Did Thorough Work

The devil is in the details, he added, especially when the devil is called a bank. The government has consulted with real estate developers and bankers. PM Orban already spoke about the plan in his February annual address, and they’ve been working on it since. "We did thorough work, which people followed with continued interest. After major debate, we included a value limit per square meter. If this was not included, housing prices could have skyrocketed. It’s not going to boost the sale of luxury apartments but will create opportunities for the middle class and those looking to enter it. There’s a lot of interest, housing construction will begin, many jobs will be created, and the state will also gain revenue," Viktor Orban pointed out.

This is an economically reasonable program, Viktor Orban said in summary.

Public Servants Deserve Respect

Speaking about the program announced for public servants, the prime minister said that while something similar existed in the private sector, it didn’t gain much traction. So the government designed a different scheme for people working in public service. "You can get one million forints a year, which can be used for loan repayment or as a down payment when buying a home," he explained.

He emphasized that, in general, it would be good if more people working in public service owned their own homes. He highlighted that a public servant’s primary goal is not money, but serving others. As he jokingly pointed out, "A doctor doesn’t operate on himself, but someone else." So this program goes beyond money—public servants deserve recognition.

Regarding family tax reliefs, the prime minister pointed out that this was another area where the government announced a breakthrough in February.

Viktor Orban emphasized that infant care and child care allowances (CSED and GYED) will become exempt from tax, which could mean up to two million forints for families. Family tax rebates will be doubled, which will be visible in salaries on August 1.

In October, mothers raising three children will be exempt from personal income tax, and from January 1, this will also apply to mothers with two children.

A tax revolution is taking place in Hungary,

said the prime minister.

He believes the necessary funding can be secured through good management. The government’s job is to help people set goals, and the government must set goals as well. Right now, the most important thing is family-friendly governance and supporting people who work and raise children, he emphasized.

European Leaders Have Failed

On the tariff agreement between the U.S. and Brussels, the prime minister said he doesn't like the attitude of "it could have been worse." He mentioned the UK as an example, saying that the United Kingdom exited the EU but managed to make a much better deal with the Americans than European leaders, who have failed.

To strike a better deal, you need good timing, and the content of the offer is also crucial—it also helps if there’s more than one offer on the table,

he said.

The Hungarian prime minister noted that the EU made several mistakes, with the first being poor timing. When Donald Trump came to power, they didn’t take him seriously, nor did they believe his promise to restructure the global economy.

"What is happening? The American president is delivering on his promises to his voters, point by point," PM Orban stressed. He also said it’s important "to make agreements that one can actually keep." However, Ursula von der Leyen made an agreement she has nothing to do with. For instance, he cited the commitment related to energy in the agreement, which falls within the competence of member states, not within that of  the European Commission president. 

Whatever could have been professionally botched in this deal was botched,

he emphasized.

According to Viktor Orban, in negotiations like these, one should try to win everything possible and minimize losses.

No Need for Secret Clauses

The prime minister also stated that everything regarding Ukraine must be discussed openly—there was no need for secret clauses. The value of goods exported from Hungary to the U.S., both directly and indirectly, could total 11 billion dollars, and a 15 percent tariff on these goods could result in 1.5 billion dollars in losses, primarily impacting companies operating in Hungary, he noted. Negotiations on response measures must be initiated, and Minister of Foreign Affairs and Trade Peter Szijjarto and Minister for National Economy Marton Nagy will take action in this matter.

They will develop a job protection action plan and an industrial protection action plan, because both the industry and jobs must be protected, the prime minister said.

He added that Europe is weak, laughable, and shows neither talent nor ability. Europe has bad relations with the Americans, with the Chinese, and is at war with the Russians. "This cannot go on. The European People’s Party supports Ursula von der Leyen, but if this is all they can get out of the situation, it’s not enough. In such cases, it’s time to pack up and go home," said Viktor Orban.

Cover photo: Hungarian Prime Minister Viktor Orban (Photo: MTI/Prime Minister’s Press Office/Vivien Cher Benko)