Document 121 - Amendment to the Income Taxes Act

The Government has expressed its disapproval of the MPs’ proposal, which increases tax benefits for children, changes the rules on parental allowance, extends the possibility of drawing paternity pay and extends the nursing allowance. It states that it wants to address the increase in parental allowance with the government’s own proposal from 2027 and disagrees in particular with the increase in the maximum monthly drawdown. It also criticises the high budgetary impact of the proposed increase in tax relief (up to CZK 18 billion a year) and the lack of justification for its financing. According to the government, the proposal would also undermine the original purpose of the paternity allowance and increase the cost of health insurance and the burden on employers.