We enter the year 2022 on Saturday, we leave this year behind us. The epidemic accompanied the past twelve months as well, but thanks to the vaccinations and the measures of the government, the country started again. It is worth taking a look back at the extraordinary announcements and economic successes in 2021.
Exemption and refund
In January of this year, Viktor Orbán announced that from 2022, the state would exempt young workers under the age of 25 from paying personal income tax (PIT). – In addition to pensioners, we also support young people so that they can stand on their own feet. If this succeeds, the entire crisis management system will be complete, the Prime Minister said.
He also indicated that "the left-wing policy that raises taxes stifles confidence, so Hungarian families are more likely to organize themselves on the defensive. If there is a tax cut, it creates confidence in people."
The plan will be implemented from Saturday, because the tax exemption will come into effect in this area as of January 1. Today, one in three or four out of ten young people work in Hungary. This is one and a half times more than eleven years ago, in 2010 only every sixth young person entered the labor market. The salary of young people has also increased significantly in recent years: while in 2010 their gross average salary was HUF 136,000, in 2021 it will be HUF 319,000.
- As a result of the tax exemption, a young person working eight hours can take home HUF 50,000-65,000 more per month. On an annual level, this means HUF 600-800 thousand more net income - László György, State Secretary of the Ministry of Innovation and Technology, pointed out on his social media page.
When announcing the move, Viktor Orbán also said that more jobs would be created than were destroyed by the virus. This is how it happened, about 4.7 million people work in Hungary, something that has not happened since the regime change.
In June, the Prime Minister announced unprecedented support at the Világgazdaság Magyarország relaunch conference. – I recommend the government to do what it has never done before. If we manage to achieve a 5.5 percent GDP growth this year, we will return the tax paid after 2021 to parents raising children in January-February 2022, he said. This will continue to be the case, as the performance of the economy increased by around 18 percent on an annual basis in the second quarter. And the third quarter produced an expansion of 6.1 percent.
The state reimburses the sja up to the average wage, which means that a parent receives a maximum of eight hundred thousand forints, so a family can increase by up to 1.6 million forints. The total cost of the benefit is HUF six hundred billion. Viktor Orbán emphasized that families were extremely affected by the epidemic and its consequences, which is why the state wants to compensate them.
Minimum wage increase with tax reduction
At this conference, the Prime Minister also spoke about the fact that the minimum wage could rise to HUF 200,000 from 2022. The state promotes this through tax reductions. This is also coming true, in October the social partners agreed on the amount of the 2022 minimum wage and the guaranteed minimum wage. The former increases to two hundred thousand forints gross, the latter to two hundred and sixty thousand forints gross. The smallest earnings thus increase by twenty to twenty percent. For this, the government will reduce the social contribution tax to 13 percent, which includes the vocational training contribution.
You can read the full article in Magyar Nemzet
Image: miniszterelnok.hu
