Parliament debates initiatives to increase birth rate

At the initiative of the CDS-PP, parliament today is debating proposals aimed at providing greater tax relief to families with three or more children and calling on the government to draw up a national strategy to boost the birth rate.

The centrist party that is part of the PSD-led ruling AD coalition, has set today’s agenda for the plenary session of parliament to include a debate on a draft bill aimed at doubling the personal income tax deduction for families with three or more children, and a resolution recommending that the government draw up a strategy to boost the birth rate.

When presenting the initiatives yesterday, Paulo Núncio, the CDS-PP’s parliamentary leader stated that, under this proposal, “Portuguese families will be able to claim a deduction of €1,200 per year for their third child and any subsequent children”.

“We propose that the doubling of this additional allowance for the third child and subsequent children be implemented gradually, that is, 50% as early as next year and 100% from 2028 onwards. This means that next year, the tax deduction for the third child and subsequent children will be €1,050 and that in 2028 it will be €1,200”.

The CDS-PP is also bringing to the debate a draft resolution (which has no legal force) recommending that the government draw up a national strategy for the birth rate.

Paulo Núncio called for “tax incentives for families with children, particularly with regard to the family property tax (IMI), vehicle tax (ISV) and road tax (IUC)”, as well as “for companies that set up crèches, nurseries and kindergartens for their employees’ children”, in addition to “strengthening the nationwide network of crèches, making them free of charge and increasing the number of places”.

The creation of “tax benefits for companies that hire pregnant women, that hire mothers and fathers with children up to the age of three, that promote flexible working hours and other incentives to improve the work-life balance” are proposals also put forward by the CDS-PP.

In addition to the proposals from the CDS-PP, the PS and Livre have also tabled draft bills, whilst the PS, JPP and Chega have tabled draft resolutions.

The PS’s draft bill aims to strengthen the Child Guarantee Supplement, “ensuring that the respective amount keeps pace with increases in dependent allowances” as provided for in the Personal Income Tax Law.

The Socialists also recommend that the Government assess the implementation of this supplement and publish the number of beneficiaries covered, the amounts awarded and their distribution by region and income bracket.

CHEGA urges the Government to adopt an “Integrated Plan to Promote the Birth Rate and Support Families, promoting demographic growth, with a particular focus on the country’s inland areas, including tax and social security-related benefits and incentives”.

LIVRE’s proposals aim to review the system for deducting education and training expenses, increasing the allowances, creating a “refundable tax credit” and raising the basic deductible amount per dependant.

JPP (Juntos Pelo Povo) recommends “the creation of a genuine family allowance in the personal income tax system, by taking dependants into account when determining the taxable income relevant for the application of progressive tax rates” and calls for an increase in child benefit and prenatal allowances.

This debate comes at a moment when statistics show the country has more residents than ever before – but growth is being powered by immigration, not by the Portuguese-by-birth.

Source: LUSA