Government agreed in the framework discussion that the development of the household deduction will be clarified in the autumn. The household deduction is designed to take care of property, eradicate the gray economy and increase the purchase of services and work.
The current model could be developed from the perspective of single economies. To give an example: I am doing a major renovation to my bathroom that will cost 18,000 euros. The work accounts for EUR 10 000 of this amount, and I will therefore receive a maximum household allowance of EUR 2 250. If I lived with a partner and split the financial expenses in half, they would both pay € 9,000 for the renovation and receive a household deduction of € 1,900. As a result, the state supports the economy of a single person with EUR 2,250 and the economy of a couple with EUR 3,800.
There are more than one million single households in Finland, which the current model does not equally encourage to do work under household deduction, even if those living alone often need help. Would it be time to set the maximum amount of the household deduction as per household name?
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