The opposition faction in the Saeima "Latvia First" proposed to exempt families with two or more children from paying personal income tax.
The demographic crisis threatens to turn into a demographic catastrophe. Concrete measures are needed to support birth rates and families with children. Today, the opposition parliamentary faction "Latvia First" submitted a bill that proposed exempting one of the working parents (of their choice) raising two or more children from paying personal income tax. The faction's position was justified from the Saeima podium by deputy Rihards Kols: "Colleagues! In 2023, 14,490 children were born in Latvia. In 2024, 12,887 children were born. In 2025, 11,637 children were born. Last year's birth statistics in Latvia are alarming. How many times do we need to achieve new anti-records in birth rates before we finally start addressing the demographic situation in Latvia? Fewer and fewer children are being born. And this is no longer just a matter of demographics. It is a matter of the country's future.
Demographics cannot be changed by a single decision, but demographics certainly cannot be changed if we do nothing. Therefore, today we propose a concrete and feasible step — to reduce personal income tax for parents raising two or more children.
The essence of this proposal is simple. Families that take on greater responsibility for the future of the country earn greater support from the state. Raising two or more children is not just a personal decision. It is a contribution to society and ensures the development of Latvia. It is important to emphasize that this is not an unconditional benefit. It is a tool that allows working parents to keep more money at their family's disposal. This means more funds for education, health, housing, and everyday needs of children. It also encourages working and paying taxes in Latvia. Support is linked to income; therefore, it motivates parents to work legally rather than turning to the shadow economy or seeking work abroad.
When we reduce taxes for such families, we are not granting privileges. We are providing opportunities: the opportunity to pay bills more easily, the opportunity to invest more in children's education, the opportunity for parents to feel more secure about the future. And for such families, stability is more important than a one-time benefit.
One of the main reasons families postpone the decision to have a second or third child is financial insecurity. If we want more children to be born in Latvia, we must eliminate this obstacle. Therefore, the question is not whether we can afford it. The question is whether we can afford to do nothing. The strength of the state does not start in the budget and does not end with laws. The strength of the state starts in families. Where children grow, there is the future. We can start with concrete, reasonable steps that provide real support to those who are already raising the future of Latvia today. I urge you to vote "for" — for Latvia, for families."
But the majority voted against, and the amendment was rejected.
