The government's new policy has raised the special additional deduction standard for individual income tax for childbirth, parenting and maintenance, which has become a measure that has attracted much attention. The State Council issued a notice on August 31, announcing that from January 1, 2023, the special additional deduction standard for infant and child care, children's education and support for the elderly under the age of 3 will be increased by 1,000 yuan each.
This policy, which aims to reduce the burden of childbearing, parenting and maintenance, is another substantive step in addition to a series of policies to support fertility. Since the implementation of the "two children alone" policy in 2013, governments and enterprises at all levels have taken a number of measures to support childbirth. In 2021, China implemented a policy that a couple can have three children and adopted corresponding fertility support measures. However, is direct subsidies to encourage fertility the most effective way? What are the keys and difficulties in encouraging fertility?
Specifically, the notice stipulates that the special additional deduction standard for infant care for children under the age of 3 will be increased from 1,000 yuan per month to 2,000 yuan per infant; The special additional deduction standard for children's education will be increased from 1,000 yuan per child per month to 2,000 yuan; The special additional deduction standard for supporting the elderly will be increased from 2,000 yuan per month to 3,000 yuan, of which the only child can enjoy a fixed deduction of 3,000 yuan per month, and the non-only child and siblings will share the deduction amount of 3,000 yuan per month, and the contribution amount per person shall not exceed 1,500 yuan per month.
The relevant responsible persons of the Ministry of Finance and the State Administration of Taxation said that this measure is conducive to reducing the burden of family support, improving residents' willingness and ability to consume, and also helping to improve and protect people's livelihood.
In addition, local governments and enterprises have also introduced a series of policies and measures to support childbirth, including maternity allowances, childcare subsidies, housing guarantees, etc. Some cities also provide subsidies for multi-child families to buy houses, and give priority to public rental housing.
Enterprises also actively respond to government policies and provide maternity benefits. For example, Qunar announced the establishment of maternity subsidy benefits, Ctrip Group launched a birth subsidy policy, and other companies also provided incentives such as birth bonuses and cash subsidies.
However, despite government and corporate measures to encourage fertility, China's fertility rate remains low. Experts believe that in addition to economic factors, the fertility concept and social pressure of the younger generation are also important factors affecting the willingness to have children. Therefore, how to increase young people's willingness to have children is still a complex issue.
In general, the government's new policy encourages childbirth, parenting and maintenance by raising the special additional deduction standard for individual tax, but whether it is effective enough and how to solve the fertility problem more comprehensively still needs in-depth study and discussion.