The tax reduction for low income single parent families is increased

The Minister’s Council approved a measure that will increase the tax reduction given to working single parents.

It will mainly help them with childcare costs. The measure concerns single parent families with taxable incomes of less than 18,000 euros. The tax reduction will go from 45% to 65%.

This reduction will help with the cost of crèches, after school childcare and camps by organisations like the Youth movement. Parents can get a tax reduction on a maximum of 11.20 euros per childcare day. The reduction will go from 5.04 to 7.28 euros per day. That’s an increase of more than 2 euros per day per child for the 2018 tax year (to be declared in 2019).

This measure will complement the government’s previous decision to increase the amount exempt from tax for low income single parent families. The parents concerned will see their buying power increase from 465 to 620 euros per year. This is according to Finance Minister Johan Van Overtveldt and the State Secretary for the fight against poverty, Zuhal Demir, who are behind the project. Families with incomes below the tax threshold will receive their reduction via a tax credit.

In total, the two measures will cost the budget 20 million euros. They are part of the summer agreement. The bills were sent to the State Council and will be submitted to Parliament after they have been approved following the second reading. The MR celebrated this progress in a press release. The party’s Woman’s President, Florence Reuters, said it was the Michel government moving to benefit women.

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