Lithuanian President Gitanas Nauseda proposing a package of tax breaks and social measures aimed at raising the country’s birth rate to 1.5 children per woman. Currently, Lithuania’s birth rate stood at 1.18.
President’s Chief Advisor on economic and social policy, said the target is ambitious but necessary amid a sharp demographic downturn.
Under the president’s proposal, families with two or more children would pay zero income tax for five years following the birth of each additional child.
“The president stresses that it is vital to slow the decline in the birthrate, at least to stop it. We’ve had a steep drop over the past few years,” Augustinavičius told LRT RADIO.
“If the indicator could increase from 1.1–1.2 to 1.5, that could be the target we should strive for.” He added, “Of course, this is difficult to change.”
Nausėda is proposing a five-year personal income tax exemption for each child born in families with two or more children and is calling for discussions on profit tax incentives for employers who hire such parents.
He also wants to set a social insurance base for young families taking maternity and paternity leave, explore refunding part of tuition payments when a child is born, and give families raising children access to rent-to-own housing as municipalities expand housing in the regions
Additional measures under consideration include establishing a social insurance base for young families to cover pregnancy and maternity leave, exploring the option of reimbursing part of tuition costs after the birth of a child, and granting families with children access to rent-to-buy housing through expanded municipal housing programs in regional areas.
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