NGM: there is huge interest in the new cafeteria element

André Palóc added that the monthly subsidy of 150 thousand forints that can be applied for from the employer is favorable because its tax burden is similar to cafeteria benefits. Those who apply for a subsidy for subletting can receive it directly, or the employer will transfer the amount to the owner of the apartment; it can also be applied for to repay housing loans, in which case the lending bank will receive the subsidy, which cannot be higher than the repayment installment – he listed.

Large employers have to negotiate with many thousands of people, and the calculations have now started on how much subsidy they will provide – he noted.

The spokesperson called the increase in the VAT exemption limit from 12 million to 18 million forints viable. He said that many entrepreneurs and the Hungarian Chamber of Commerce and Industry had also expressed their demand for the increase.

He highlighted that it is important that the entrepreneurs concerned can provide services more cheaply. In the case of hairdressers and taxi drivers, it was observed that if their annual income approached the threshold, the expected tax payment was included in the pricing. The 50 percent increase in the individual tax exemption will be a relief, which is an opportunity to “relax and provide room for maneuver” in pricing, and is also good for those who use the service.

He also mentioned that the Hungarian employment rate is in 5th place in the European Union ranking, according to the latest data, real wages have increased by 7.9 percent, and the wage increase is over ten percent for those with the lowest income and in the middle income category. Consumption growth is over 4 percent on a one-year basis, and lending has “moved upward.” New car sales increased by 13 percent year-on-year, the housing market “seems to be moving,” and 2024 could be a record year for tourism – thanks also to the nights spent by domestic guests.