Nursery school bonuses will increase, but value-added tax on children’s goods will also increase.
This is good news for families with multiple children, as consumer groups challenge the proposed increase in value-added tax on baby products and women’s sanitary napkins.Meanwhile, taxes on plastics and sugar introduced in 2020 will be postponed again
Good news for large families. The budget bill to be introduced today, Tuesday, October 24, 2023, will increase child care bonuses for families with two children, with a first child under the age of 10 and a second child born in 2024. It amounts to 2,100 euros. For this purpose, authorized expenditures are as follows: In 2024, it will increase by 240 million euros, and from 2029 it will grow structurally up to 306 million euros per year.
But it’s not all good news for the family. As already announced the day before, the government has not confirmed that it will reduce the value added tax on sanitary napkins and infant products to 5%, returning to a 10% tax. His reduction in VAT on these products was one of his right-wing campaign horses. However, the government now believes that this measure is no longer effective due to inflation. Prime Minister Giorgia Meloni reiterated at a press conference: “I don’t think it’s worth renewing the measures because the value-added tax cut has been largely absorbed by price increases.” But consumer groups are protesting.
The measure also confirmed that plastic tax and sugar tax would be frozen for a further six months until the end of June. Therefore, the two taxes that were introduced in the 2020 budget but did not come into force should come into force from 1 July 2024, absent further intervention.
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Source: Today
