Question:

Which of the following countries during 2019 provided lifetime personal tax exemption to women with four children?

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Demographic policies in many European countries are increasingly aimed at countering aging populations through incentives for higher birth rates.
Updated On: Jul 15, 2026
  • India
  • Hungary
  • Norway
  • Finland
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collegedunia
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The Correct Option is B

Approach Solution - 1

In 2019, Hungary introduced a groundbreaking policy to address its declining birth rate by offering lifetime personal income tax exemption to women who have four or more children. This policy was part of a broader family support package designed to encourage larger families, including housing subsidies and preferential loans.
Norway, Finland, and India have family support policies but do not offer lifetime tax exemptions of this nature. Hungary’s measure stands out for its strong financial incentive aimed at reversing demographic decline.
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Approach Solution -2

The question asks which country gave a lifetime personal income tax exemption to women with four children in 2019. Let's look at each option on its own merits.

  1. India: India has various family welfare schemes and maternity benefit laws, but it has not offered a blanket lifetime income tax exemption tied to having four children. This option does not match the policy described.
  2. Hungary: Facing a shrinking population, Hungary announced a family policy package in 2019 that waived personal income tax for life for women who have four or more children. The measure was aimed squarely at boosting the birth rate, along with other benefits like housing loans and subsidies. This matches the question exactly.
  3. Norway: Norway runs strong parental leave and child benefit programmes, but these are not linked to a permanent income tax waiver for mothers of four. This option can be ruled out.
  4. Finland: Finland is known for generous parental leave and its baby box scheme for new parents, not for a lifetime tax exemption based on the number of children. This option does not fit either.

Only Hungary's 2019 family policy matches the specific benefit described in the question, a lifetime personal tax exemption for women raising four or more children.

Therefore, the correct answer is Hungary.

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Approach Solution -3

This question turns on a specific 2019 population policy, a lifetime personal income tax waiver for women with four or more children. Each option needs to be checked against what that country actually announced that year.

  1. India: India runs several welfare schemes tied to childbirth, such as maternity benefits and state-level cash incentives, so it can sound like a plausible fit at first glance. But none of these schemes touch personal income tax, and there is no central provision exempting mothers of four from tax for life. This rules India out.
  2. Hungary: Hungary's 2019 family policy went well beyond the usual child benefit or subsidy model, it specifically targeted the tax code itself. Women who have or raise four or more children became permanently exempt from personal income tax, a measure paired with housing grants and car purchase subsidies, all aimed at reversing one of Europe's lowest birth rates. This is the only option that matches a tax exemption rather than just a subsidy or grant.
  3. Norway: Norway is often cited for generous parental leave and universal child benefits, which can make it a tempting choice for anyone recalling Scandinavian family policy. However, none of these Norwegian schemes involve waiving income tax permanently based on number of children.
  4. Finland: Finland's reputation rests on its maternity package, the well known baby box of infant supplies given to new parents, not on any tax relief tied to family size. This makes it a different kind of policy altogether from what the question describes.

Once each country's actual 2019 family policy is checked rather than just its general reputation for family support, Hungary stands alone as the one offering a lifetime tax exemption.

Therefore, the correct answer is Hungary.

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