Income tax cuts: top rate to drop to 25%
A revision of the top rate of income tax was announced by Finance Minister Tonio Fenech this evening.
The minister said the top rate of income tax will, as from next year, go down from 35 per cent to 32 per cent for those on a single computation earning between €19,501 and €60,000; those on a joint computation earning between €28,701 and €60,000 and those on a parents' computation earning between €21,201 and €60,000.
As from 2014, the top income tax rate will go down to 29 per cent and drop further to 25 per cent in 2015.
The rate of 35 per cent will apply for those earning over €60,000.
As a result, those earning €45,000 will save some €500 next year, €1,000 in 2014 and €1,500 in 2015.
The minister pointed out that 17 taxes were reduced in this legislature, including giving mothers a tax free year when they returned to work. Rebates were given to the parents of children in private schools and childcare centres, sports and cultural facilities. The licences for televisions, the departure tax and credit cards tax were removed.
48 Comments
Post comment
Please sign in or create your Account to post comments.
Michael Hudson
Nov 29th 2012, 09:57
What a waste of time and money. Why persist when we all know budget vote will not go through? Poplu gwejjef.
J Tabone
Nov 29th 2012, 08:46
Skuzi, sur ministru! Your term will be up come next March. Who is going to say that you and your party will be re-elected? So how can you tie up the next government - whoever it will be - by promises that you should have upheld three years ago? Thank you for bringing the max tax from 35% to 32%. If it is reduced to 25% that is a problem of a future government!
David Caruana
Nov 29th 2012, 08:25
EUR60,000 is triple a EUR20,000 salary - so why place them in the same bracket?
Why stop at EUR60,000? I would have preferred seeing something like:
0% :: 0 - 8500
10% :: 8501 - 14500
15% :: 14501 - 19500
25% :: 19501 - 35000
30% :: 35001 - 60000
38% :: 60001 - 95000
45% :: 95001 - 150000
55% :: 150001
William Caligari
Nov 29th 2012, 09:44
@ David Caruana,
Jien pensjonant u dejjem gejt iccargjat:
15% = 8501-14500
I preferred, nothing tax for the pensioners!!!
Silvio Abela
Nov 29th 2012, 06:54
What the esteemed Minister failed to mention (as he usually does) is the "thousands" who will benefit from this measure, It is people like himself and his esteemed cabinet cronies and those CEO's of public entities that take home a lot more than the average voter. The majority take much much less. He tried to win their sympathy by increasing the children's allowance. I'm running out of space...
B Ellul
Nov 29th 2012, 06:35
JM will you keep all promises by through this budget? hehe
Victor Gelfo
Nov 29th 2012, 04:14
This month I paid 1200 euros between tax and NI and and I take nothing for free. Those you term
'Poor' leads a better life than me: weekends off,feasts with their family,holidays abroad,subsidies etc and I have forgotten the face of my wife to pay for them.
How can I complain now?
G G Debono
Nov 28th 2012, 23:18
Tax is only for the little men .
Most people earn less than 45,000 and they will be bearing the brunt - as usual.
C Sant
Nov 29th 2012, 06:31
that is exactly the pay bracket that got the tax cut! Why is it that people like you thread where angels fear to walk?
C Debono
Nov 29th 2012, 06:46
Well it applies to people earning more than 19501 on a single computation and I know many who earn more than that. These are probably people who studied and work hard and are therefore should be allowed to enjoy their earnings!
Lino Busuttil
Nov 30th 2012, 21:08
Does this bracket includes the PM and the Ministers.?
A. Mifsud
Nov 28th 2012, 21:05
...if only we could have pre election budgets every year!!!
Without any doubt a super generous budget. Addresses everyone in every sector. Labour will have to keep its promises and implement THIS budget NOW - by voting for it in parliament. JM spoke too early - as usual. This is a tricky one for JM. Franco has put Gonzi in a win-win situation.
mark borg
Nov 28th 2012, 20:48
uzgur jaf li il vot ta Franco bye bye ....u dan hu tpacpic u tpacpic fil vojt biss u mhux hu irid jara min fejn gejjin il flus....jhekk alla hares qatt jerga jitla ...taraw xi hlew tal gonzipn u kif isamruna kollha aktar
Kurt Falzon
Nov 28th 2012, 21:04
dan il-gvern jaghmel dmiru u la wasal z-zmien li jipprezenta l-budget...hekk ghamel. Ma harabx mir-responsabbilita . GonziPN = fatti u rizultati.
Ejja ha naraw Muscat x ha jaghmel....l-anqas pjan wiehed...u qalilna li ha juza l-istess budget.
mark borg
Nov 28th 2012, 21:16
@kurt falzon
issa jigi muscat mela u jibda jispara balla figuri bhal tonio u jikkuntentak tajjeb ? inti x garanzija ghandek li mhux se jibda jsammrek mil l-ghada ta l-elezzjoni jhekk jitla jerga gonzipn ? kollha kemm ahna nafhu li budget farsa u biex jgholli dazji u jintoduci taxxi il pn ma jistenniex il budget .blistess criterju min fejn gabhom il flus zejda tonio ? ghidilna ftit
Kurt Falzon
Nov 28th 2012, 21:31
dan huwa budget li jaghmel sens. Li kieku diga kellna l-parir negattiv tal-EU. Illum l-approvazzjoni tal-budget mill-EU huwa requirement li kull pajjiz irid jghaddi minnu.
paul camilleri
Nov 29th 2012, 08:02
@Mark Borg minn jaf minn ha samarna l-ghada ta l-elezzjoni?jekk ux il PN jew LP? sa issa il LP dejjem kellom track record ta tismir
Helena Portelli
Nov 28th 2012, 20:48
This is why this is my choice of government!
simon ellul sullivan
Nov 28th 2012, 20:45
to the vacant minds grumbling that low earners dont get tax breaks...
apart from the fact that you pay less tax already, you get everything for free ... you get money for having kids you cant afford you get rebates left right and center free healthcare free schooling.... have you even hear of the woes affecting other nations much stronger than little old malta...
you have some cheek !
robert pace
Nov 28th 2012, 20:53
He can burn in hell , what does he think we are on the eve of an election. Do you really believe we are so naive???
Kenneth Ellul
Nov 29th 2012, 00:03
Well said Simon!
Paul Gauci
Nov 29th 2012, 00:52
Simon in Malta health and education are free for all....even if you're a millionaire. If you opt for private health or education its your choice.
Robert Agius
Nov 29th 2012, 04:17
I don't have or want kids. Hell, I don't even want to get married. What do I get? I get to pay taxes for YOU.
Everything for free? you got to be kidding me mate. NOTHING IS FREE!! It is taken one way or another for EVERYONE. As far as I know EVERYONE is entitled to free health and education.
Noel Abela
Nov 28th 2012, 20:43
If Tonio Fenech thinks that we are all cwiec Maltin he is in for a very very big surprise.
Gunther Waldhar
Nov 28th 2012, 20:08
Sewwa, iz-zghir jibqa jbati imma.
jm busuttil
Nov 28th 2012, 20:26
@ Gunter
Iz-zghir has:
Water and electricity grant
Full children's allowance
These two come into mind
@ John Damanuele
Those with Social benefit pension and still under the trashhold do not pay any tax. At the same time they might still be having their water and electricity grant.
John Demanuele
Nov 28th 2012, 20:07
Great for those earning 45.000 but, if I read this correctly, those with only the social benefit pension as their sole income will still be paying income tax. Disgusting.
Lawrence Hallett
Nov 28th 2012, 20:07
then malta loses its rating in the eu as the fiscal bits and pieces cannot be met with this tax cut, well done pn sacrifice the people you serve for your own egos
Mark Pace
Nov 28th 2012, 20:23
this budget will be approved by the EU and no negative consequences will be felt by the people
j brincat
Nov 28th 2012, 20:01
Too little TOO late. That was promised in 2008.
(jb)
Carla Micallef
Nov 28th 2012, 20:09
The international crisis did not permit these measures before.
Thomas Grima
Nov 28th 2012, 20:00
U jiena li naqla inqas minn EUR20000? Xha nigwadanja pls?
A Vella
Nov 28th 2012, 20:07
You already pay peanuts and have been doing so for ages
Charles Sammut
Nov 28th 2012, 20:12
Gvern gdid meta tasal l-elezzjoni 2013....u "leader " ta' l-opposizzjoni Simon Busuttil!
...and the beat goes on..and the beat goes on.....
Kenneth Ellul
Nov 29th 2012, 00:05
Work harder and try and increase your income. People don't earn more then 20,000 by sitting around and doing nothing !
Marton Saliba
Nov 28th 2012, 19:59
Better late than never I suppose...
mark borg
Nov 28th 2012, 21:19
mela issa biehli id dar tieghek u inhallsek 50 sena ohra tajjeb ??
jm busuttil
Nov 28th 2012, 19:58
So it seems that this means that the PN electoral programme is 100% completed.
Jennifer Borg
Nov 28th 2012, 19:56
Any comments Sinjuri tal-Labour? PN kept its promise when it was responsible to do so and not when such a measure would have send our countries finances to the dogs! Prosit PN....serji u efficenti as usual!
Victor Calleja
Nov 28th 2012, 20:05
Iva ghax waslet elezzjoni. Qallek min fejn se jgib il flus?
M Attard
Nov 28th 2012, 20:24
@Victor Callejja - from the same place Joseph Muscat is getting them to reduce the electricity bills.
Joseph Borg
Nov 29th 2012, 08:57
and you are so gullable to believe that in 2009 the country couldn't afford it (when supposedly we had Finanzi fis Sod) and now we can?
Personally I don't think it was responsible to do it then and not even now.
He did it because it is election time and that's it.
Karl Mifsud
Nov 28th 2012, 19:54
Wieghda ohra tal-gvern mizmuma. Well done!
Victor Calleja
Nov 28th 2012, 20:04
Its about time. But for the heavy earners only.
Joseph Gatt
Nov 28th 2012, 20:48
Not really...this include the average earner.
Nicole Magri
Nov 28th 2012, 19:52
Wieghda ohra mwettqa!
G Tonna
Nov 28th 2012, 19:51
This is fantastic.
Alex Cassar
Nov 28th 2012, 19:51
PN = lower income tax rates for everyone.
Please choose the reason of your report below: