The child tax bonus has to double, the government has rejected

Bratislava, 28 November (TASR) – From April 1st next year should be introduced in Slovakia a double taxation bonus for a child under six. This is what the Most-Hid coalition party is proposing in the Bill to Amend the Income Tax Act, which was approved by Cabinet on Wednesday.

The amount of the tax premium from 1 January 2019 will be 22.17 euros per month for each dependent child living with a taxpayer in the household. The main purpose of the proposal is to introduce a double the amount for each dependent child until 6 years old.

"From 1 April 2019, the amount of the tax premium for a taxpayer who breastfeeds a child under six months of 22.17 EUR per month for each child thus maintained is increased" proposed by the applicants.

The goal is to help young families

MEPs hope that this amendment will help young families in particular to create the conditions conducive to its implementation. A young family with a child, respectively. According to Most-Hid, financial expenditures for children under the age of 6 are associated with entry into kindergarten and then into the first year of elementary schools. "We have to deal with the current demographic crisis by supporting young families to ensure a growing birth rate, so that parents and future parents do not have to worry about whether the child is in the family. Child's education can be adequately funded. With this proposal, we want to help parents create an even more difficult situation associated with lower preschool income."The deputies stated that the legislation in force did not sufficiently take into account the growing needs of families with preschool children.

Amount of the tax bonus from 1 January 2019, or 22.17 euros per month on any dependent child living with a taxpayer in the household. The amount of the annual tax premium is set at EUR 266.04 per child, whether or not of preschool age. "The main objective of the bill is therefore to introduce double the amount of the tax premium for each dependent child under 6 years old who lives with the taxpayer in the household. As of April 1, 2019, the amount of the tax premium for a taxpayer who breastfeeds a child under 6 years of age will increase by 22.17 € per month for each child thus maintained., "suggests the deputies.

The proposal envisages a negative impact on the budget of the public administration, but will also have positive social impacts. The changes would represent a personal income tax loss of 74.6 million euros in 2020 and 80.2 million euros in 2021.