USE OF THE TAX MORTGAGE INTEREST DEDUCTION FOR THE PURCHASE OF OWN HOUSING IN THE CZECH REPUBLIC

: The paper, based on primary research and evaluation of data from the Financial Administration of the Czech Republic, evaluates housing support in the form of tax deduction of mortgage interest from the tax base in the Czech Republic. Research has shown that this support undermines horizontal and vertical tax fairness and excludes assistance to taxpayers with incomes below the taxable amount. Housing support is not conceptual and lacks control and feedback mechanisms. However, distributional effects need to be taken into account when considering tax reforms, especially for indebted and cash-strapped households. However, we do not recommend completely canceling the tax deduction, which would limit household budgets and young families' access to their own housing. Younger taxpayers mainly use the tax deduction, and the abolition of the tax deduction would increase housing costs for these taxpayers.