Index – Economy – Do you support the PIT exemption for people under 25 years of age?

In mid-January, Prime Minister Viktor Orbán announced that the income tax for young people under 25 would be abolished no later than 2022, at least to the extent of median wages. This would mean a loss of revenue of around HUF 150 billion a year for the central budget, but in return it would leave around half a million guilders in the pockets of young workers a year, who are currently close to 300,000 in Hungary.

Like everything, this suggestion can be evaluated in many ways. The Index has compiled the most common pros and cons of the planned measure.

According to the government and supporters:

• Due to the epidemic, and in general, today it is very difficult to become financially independent from the family as a university student or career starter, so this couple of tens of thousands of florins a month will be of great help.
• According to Minister Katalin Novák, this measure can also increase the desire of young people to start a family (of course, not alone, but together with other family support benefits).
• Young people working through student cooperatives will also be able to take advantage of the opportunity; This detail was revealed days ago, and the government is also consulting with professional youth organizations this week.

Critics of the plan, however, warn that:

• Due to 30-40-50 thousand HUF, young people without a vision will not remain in Hungary yet, although this is one of the stated goals of the measure.
• It is feared that while they leave net wages intact, employers will simply swallow the remaining amount of the tax exemption, so that while student work will get cheaper, young people will get nothing at all.
• And if people under the age of 25 take home more money, it could cause salary tensions within companies, as the salaries of beginners will rise substantially while those of more experienced workers will remain unchanged.

What interpretation do you prefer? Vote!