Minister Gulyás: National consultation to launch on tax system, pension supplement confirmed

At Wednesday’s government briefing, Minister Gergely Gulyás revealed that the government will launch a national consultation on the tax system. He described the issue as a key topic of public debate, noting that Hungary’s current flat-rate personal income tax system is under pressure from both domestic critics and foreign interests.

“The notion that anything can be done after an election is unacceptable,” the minister said, referencing recent controversies and citing the need for public input. He also warned that efforts to reshape the tax system reflect Brussels’ interests and are supported by figures within Hungary. The minister emphasized that the current model has supported record employment, with over one million more people working and contributing to public finances compared to previous years.

Minister Gulyás also announced the final figure for this year’s supplementary pension increase. In response to a 4.8% rate of pensioner inflation, the government has approved a retroactive 1.6% pension raise. On average, recipients will receive a lump sum of HUF 47,200 in addition to their November pension. From December onward, monthly pension payments will reflect the higher amount. The measure will cost the state HUF 112 billion, which Gulyás confirmed is already allocated in the budget.

Regarding housing, the minister reported strong demand for the government’s new “Home Start” loan program, with over 10,000 applications submitted in just two weeks. The program offers a fixed 3% interest rate, allowing renters to become homeowners. Interest has been balanced nationwide, not just in Budapest, and the program is expected to boost the construction of 10,000–15,000 new homes this year, potentially creating tens of thousands of new jobs and driving economic growth.