Prime Minister Viktor Orbán has announced a comprehensive overhaul of Hungary’s tax system, aiming to place families at its centre within the next four years. Speaking on public Kossuth radio, Orbán emphasized that strong families are the foundation of a strong nation, reinforcing the government’s longstanding commitment to family-friendly policies.
He highlighted the success of existing family tax benefits and revealed that the government plans to double them in a phased manner. Under the new system, parents with one child would receive 20,000 forints, those with two children 80,000 forints, and families with three children up to 200,000 forints in tax relief. Moreover, he reiterated Hungary’s goal of becoming a ‘family tax haven’, where millions may eventually pay little to no income tax.
Addressing the country’s economic challenges, Orbán signalled a crackdown on inflation, stating that if diplomatic efforts fail, the government will intervene with force. He criticized retailers for driving up prices beyond reasonable margins and instructed the Minister of Economic Development to ensure fair pricing. If voluntary measures prove ineffective, the government will impose stricter regulations.
Inflation, he noted, has particularly impacted pensioners, necessitating state intervention. To mitigate the impact, a VAT refund scheme will be introduced, allowing pensioners to reclaim a portion of their expenses. The programme is expected to provide monthly refunds of 10,000–15,000 forints per individual in the latter half of the year.
Turning to global politics, Orbán expressed optimism about peace efforts in Ukraine, noting that former US President Donald Trump’s potential return to office has diminished the risk of war escalation. He positioned Hungary alongside the Vatican and the United States in advocating for peace and economic stability.
On the domestic front, Orbán addressed national security concerns, including drug-related crime. He announced a government-led operation against synthetic drug trafficking, set to commence on 1 March. The campaign will target dealers, whom he accused of preying on vulnerable communities, and will be led by newly appointed government commissioner Horváth László.
The Prime Minister reaffirmed his government’s stance against gender ideology, stating that Hungary will not yield to Western pressure. He announced plans to enshrine biological definitions of male and female in the country’s Fundamental Law, warning against ‘gender propaganda’ in schools. Additionally, he declared that the Budapest Pride parade would no longer be held, arguing that its previous support relied on external influence, particularly from the United States.
Regarding Ukraine’s EU accession, Orbán maintained Hungary’s opposition, citing economic concerns. He warned that integrating Ukraine into the bloc under current conditions would harm Hungarian farmers and destabilize the national economy.
Concluding his remarks, Orbán acknowledged that implementing these reforms would be challenging but pointed to his government’s track record of achieving seemingly impossible goals. He cited the reduction of personal income tax and the expansion of public employment programmes as evidence of the administration’s ability to deliver on its promises.
With Hungary’s tax policies set for a major transformation and the government prepared to take strong measures against inflation, Orbán’s vision marks a significant shift in economic and social strategy for the coming years.
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