The top rate of income tax for those earning up to €60,000 will be reduced from 29% to 25% next year, in line with the plan announced three years ago, Finance Minister Edward Scicluna announced in the Budget speech this evening. The cut will apply for single, married and parental computations. There will be no changes on taxation on dividends.

He also announced a once off €35 bonus for all persons in receipt of social security benefits, all low income earners, and all those income tax payers working full-time not benefiting from the 2015 income tax reductions.

Stipends would rise according to the cost of living. The bonus would  also be given on a pro-rata basis to students in their stipend.  Maintenance grants for students would not be taxed. 

The present tax ceiling will be raised to take COLA into consideration. Furthermore, pensioners whose pension does not exceed the minimum wage will also be exempted from paying income tax.

More stories on the Budget at http://www.timesofmalta.com/budget

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