Hungary has introduced a sweeping new policy that grants lifelong income tax exemptions to mothers with multiple children.
The government announced that women with one child will be exempt from income tax until they turn 30, while mothers with two or more children will never have to pay income tax again.
The move is part of Hungary’s efforts to address its declining birthrate. The country has been facing demographic challenges for years, with fewer births and an aging population putting pressure on the economy and social systems.
By easing financial burdens on mothers, the government hopes to encourage more families to have children. This is the latest in a series of pro-family policies introduced in Hungary, which has previously offered housing support, childcare benefits, and other incentives for parents.
Hungary has taken a different approach compared to many European nations that rely on immigration to counter population decline. Instead, it has focused on boosting domestic birthrates through economic incentives and family-friendly policies.
The policy is expected to have a major impact on young families, particularly women who might otherwise delay or reconsider having children due to financial concerns. However, some critics question whether tax cuts alone will be enough to reverse the demographic trend.
Hungary’s government remains firm in its commitment to increasing the birthrate through financial support rather than relying on migration. The long-term effects of the policy remain to be seen, but it marks one of the most aggressive pro-family tax initiatives in Europe.