German government agrees family tax subsidy

31st January 2006, Comments 0 comments

31 January 2006, BERLIN - Seeking to boost sagging birth rates, the German government on Tuesday agreed a family tax subsidy to finance daycare for children, sources told Deutsche Presse-Agentur on Tuesday.

31 January 2006

BERLIN - Seeking to boost sagging birth rates, the German government on Tuesday agreed a family tax subsidy to finance daycare for children, sources told Deutsche Presse-Agentur on Tuesday.

Under the deal two-thirds of daycare costs can be written off from taxes, the sources said.

The tax benefit will kick in from the first euro spent on day care, and not merely for sums spent above a 1,000 euros (1,213 dollars) minimum for children up to the age of six as had originally been planned.

Low birth rates are causing grave concern in Germany.

A government study said in a worst case scenario that Germany's population could slump from the present 82 million to just 67 million by 2050 if people do not start having more children.

DPA

Subject: German news

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