Presidency: NDP with lowest incomes could match MMA as early as next year

“The President of the PNPD proposes to also reach out to parents working on an individual basis. Families could receive assistance once a year by submitting annual tax returns. If a person is raising two children and earning the minimum wage, after having established the PNPD, his total non-taxable income will be equal to the MMA next year,” presidential adviser Ridas Jasiulionis said in a comment sent to Elta.

The presidency also stresses that in order to achieve a fairer tax system in Lithuania, it is necessary to take into account whether taxpayers are raising children, and the government has promised in its program that in the long term income tax would not only take into account the amount of income, but also the taxpayers’ dependents.

“Among the tax reform measures currently proposed by the Government, none meets this promise, which is why the President is proposing the PNPD for children, which could reach 87 euros. This measure would create some budgetary losses (about 60 million euros), but these would be more than covered by the adoption of the proposals for the progressive taxation of high incomes, foreseen in the tax reform, supported by the President (generating about 70 million euros). euros in the budget),” the comment read.

By government decision, from 2024 the MMA should increase by 84 euros to reach 924 euros excluding tax. The government also proposes to increase the NPD by 125 euros, up to 750 euros. With the PNPD proposed by the president, the NPD of a person raising two children would amount to 924 euros, which is the equivalent of the MMA.

Finally, the Presidency notes that in order to reduce social inequalities in the country, it is necessary to assess that families raising children in Lithuania bear a higher net tax burden than the average of advanced countries, members of the Organization for and economic development.

“The alternative proposed recently by the government – either a universal child allowance or – a non-taxable supplementary income system per child is incorrect. In advanced countries, there is a practice whereby the state combines both a tax assistance and social assistance for families raising children,” said R. Jasiulionis.

ELTA recalls that the head of the President Councilor Irena Segalovičienė said last week that the leader of the country proposes to introduce tax relief for families and thus reduce inequalities and bring the NPD closer to the MMA – which is a goal strategic.

Separately, Minister of Social Security and Labor Monika Navickienė claimed that the presidency’s proposal to introduce tax relief for families is questionable, but in recent years it has taken the opposite path – l children’s money, and that there is no need to replace one measure with another. Also, according to her, the presidency should indicate how much such a decision would cost the budget and what would be the source of the income.

Source: The Delfi





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