Amendments to the Personal Income Tax Law were prepared by former Minister of Finance, Member of Parliament and conservative Gintarė Skaistė. She proposes not to tax the allowance portion that does not exceed the average monthly wage of the past three years.
Read more Six children, six C-sections: what really determines a woman’s decision to become a mother?
At the proposal of the Ministry of Finance, the Government supported the goal of encouraging birth rates and creating more favorable conditions for raising children, but did not approve the measures proposed in the project.
According to the Ministry’s preliminary assessment, the proposal would reduce the revenues of the state and municipal budgets from personal income tax by 3.8–7.6 million euros per year.
“Considering the requirements of fiscal discipline and the limit on net expenditure growth, and the fact that due to the current geopolitical circumstances priority is given to strengthening national defense and financing defense needs, reducing budget revenues at this time would not be compatible with the financing possibilities of priority functions,” the ministry notes.
Read more Does creatine help restore muscle strength even without exercising?
Moreover, according to it, the current regulation provides both financial and tax support measures for individuals who have children.
According to G. Skaistė, her proposal was motivated by the current demographic situation in Lithuania, where birth rates are declining and it is necessary to create favorable conditions for families and raising children – the aim is to increase the financial security of families and encourage responsible parenthood by providing real support when a child is born.
