Minister explains FSS adjustments for reduced income tax

Finance Minister Edward Scicluna has explained in parliament how workers will be paying less income tax for several months to compensate for higher income tax paid between January and April until the tax rates were reduced in line with the provisions...

Finance Minister Edward Scicluna has explained in parliament how workers will be paying less income tax for several months to compensate for higher income tax paid between January and April until the tax rates were reduced in line with the provisions of the Budget.

He told Chris Said (PN) in reply to a parliamentary questions that once the reduced tax rates were inputted into the payrolls, the mechanism of the Final Settlement System (FSS) started to automatically adjust itself so that by the end of the year, taxpayers will pay exactly what they are supposed to.

Tax in the coming months will be lower than that stipulated in order to compensate for those months when higher tax was paid until the backdated reduced tax rates were introduced.

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