Hungarian Prime Minister Viktor Orbán gave a sweeping interview to the EconomX channel on YouTube.

Talking up some recent measures the government launched in July, he was confident they would be a boost to the economy. He also touched on new family tax credits, the personal income tax exemption for mothers with three children, and the new 3 percent loan to be introduced for small businesses. 

Taxes were front and center on the agenda, especially as elections are next spring, with Orbán emphasizing that under Péter Magyar’s Tisza Party, taxes would be raised, as that is what Brussels demands. 

He also addressed rumors that the popular flat-tax KATA vehicle for self-employment taxation would be expanded again, “particularly for intellectual or ‘brain-based’ work, as noted by the government’s About Hungary portal. 

“’The Hungarian brain is the most valuable economic asset,’ he declared, suggesting that the government is looking for ways to support high-skill, individual entrepreneurship more effectively,” it wrote. 

Nevertheless, given past abuses of KATA, the government must ensure there is no repeat of such instances before allowing more people to utilize it.

The focus of this government, the prime minister made clear, is to have a tax system that is “as simple as possible and would provide a financial source accessible to everyone,” according to Index.

On this front, the VAT exemption limit for individual entrepreneurs may change as well. Currently, the measure would affect approximately half a million entrepreneurs, who would see the VAT deduction go as high as HUF 24 million ($72,000).

Turning back to the economy in general, Orbán noted that the availability of energy and its price will be a decisive factor in the next 5-10 years across the globe, indicating that investors will simply go where energy is cheap.  

As to Hungary joining the euro, the Hungarian prime minister flat-out said there is zero chance of this, as it would tie the country even closer to the EU by way of adopting the euro. 

“​​Let us have a forint, a forint with a strength that is good for the economy. The more people work, the more money they earn, and the exchange rate serves this purpose,” he said. 

Emphasizing improved relations with the U.S., Orbán told viewers that since Donald Trump’s presidency, around HUF 150 billion of American investment has come to Hungary. Nevertheless, with the push by the new admin for more investment in America, he expects a multiple of that amount from the U.S. to be invested in Hungary. 

This will be front and center when the two leaders meet again, which Orbán indicated will be soon.