Updated:Government insists minimum wage earners not taxed
(Adds government reply)
The Labour Party said this morning that it would announce its proposals to reverse a situation when minimum wage earners on single computation were charged income tax.
MP Owen Bonnici and election candidate Edward Zammit Lewis said at a press conference at Labour headquarters that following the cost of living increase announced yesterday, and when statutory bonuses were included, the minimum wage rose to €8,945, well within the €8,500 threshold below which income was not taxable.
Dr Bonnici noted that during a press conference yesterday, the prime minister had repeated that minimum wage earners were not taxed, even though the finance minister appeared to be trying to correct him. (The Finance Ministry later issued a statement reiterating that minimum wage earners are not taxed)
He said that the Labour Party did not agree that minimum wage earners should be charged income tax and it was considering its options, one of which could be that of raising the threshold.
Government: Minimum wage earners not taxed
In a reply, the government insisted that minimum wage earners are not taxed and said that with the raise given yesterday, the minimum wage increased to €162.19 a week (€8433.88 a year).
This was lower than the taxable income of €8,500 for a single computation, €11,900 for a joint computation and €9,300 for a parent computation.
Any other income which would lead to the sum going over the non taxable amount would be taxed as any other income.