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The Seimas member who registered the amendment to the Personal Income Tax Act says such support would help alleviate the one-time costs incurred by parents during the first year of raising a child.
“250 Amount of basic social benefits in 2020 would be equivalent to an additional 10,000. EUR to the additional amount of non-taxable income, which theoretically would mean the potential to recover up to 2,000. Personal income tax paid in euros”, says the author of the project.
According to him, this amendment to the law would apply to personal income tax paid by households, and would encourage the declaration of household income, and even if, for example, the mother does not have sufficient income to benefit from the full tax benefit. , stating Household income is likely to be depleted.
According to G. Paluck, editor of the project, the maximum use of such benefit would cost about 55 million euros, which would alleviate the economic situation of mothers who raise their newborns. 2020 In the third quarter, the country’s average salary before taxes amounted to 1,454.8 euros. A person who receives that salary pays around 2,000 per year. Personal income tax 900 euros.
According to Paluck, most of these benefits would be converted into consumption and possibly contribute to stabilizing or even increasing the birth rate.
Child money and universal benefits only partially address the problem, which is due not only to lack of access to public services, but also to low incomes, which create significant obstacles to children’s long-term and qualitative development . The birth of a child becomes a serious financial challenge for the family budget, because the main need for investment in the environment that the child needs is high and very significant ”, says G. Paluckas.
According to data from the Lithuanian Department of Statistics, in 2019. 27,393 children were born in Lithuania, 759 or 2.6 percent. less than 2018
As indicated in the explanatory memorandum of the document, people (mostly women) who are raising their children alone are at higher risk of poverty. 2019 According to data from the Department of Statistics, the absolute poverty rate in these households was 19.5 percent, and without social benefits, the absolute poverty rate in these households in 2019 would have increased from 19.5 to 37, 1 percent. During the same period, 7.7 percent lived below the absolute poverty line. Therefore, the poverty rate of the Lithuanian population in the aforementioned households was almost double.
Currently, universal support and social support measures are applied to the birth of a child, which are not linked to household income or income tax paid.
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