The government has raised the income tax threshholds for low- and middle-income earners with the 35 per cent threshhold remaining unchanged.

The lowest threshhold has been raised from Lm4,300 to Lm4,500 for joint computations, while the 25 per cent band has been extended to Lm10,000.

This means savings of Lm30 for those earning up to Lm6,000 and of over Lm243 for those earning over Lm10,000. The 20 per cent and 30 per cent bands have been consolidated into the 25 per cent and 35 per cent bands.

Parliamentary Secretary Tonio Fenech said the government would consider increasing the 35 per cent threshhold of Lm10,000 in the future.

Malta's taxation on labour is among the lowest in the EU at 12.2 per cent of GDP, compared to the EU average of 18.5 per cent.

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