Income tax cuts announced

Tax bands are being widened, leaving €12 million in the workers’ pockets, Finance Minister Tonio Fenech said today.

He said that said this, together with the savings made through tax cuts in the last two budgets, was leaving €84 million in the peoples’ pockets.

The lowest tax band of those on a single computation has been widened by €350 bringing the non-taxable amount to €8,500. The 25 and 35 per cent bands have been widened by another €500 each.

The lower tax band for those on a joint computation have been widened by €500 bringing the non-taxable amount up to €11,900. The 25 and 35 per cent bands have been widened by €700 amounting to tax cuts of between €75 and €215. Over a three-year period, this means a reduction of between €208 and €1,575, the minister said.

(See tables)