The Budget at a glance - top rate of income tax cut, children's allowance rises

Video: Mark Zammit Cordina

The top rate of income tax will be reduced and children's allowance will rise, Finance Minister Tonio Fenech announced in the Budget speech this evening.

The following are the main Budget measures:

* People earning up to €60,000 will see their tax rate drop to 32% next year from the current 35%. The rate will drop further to 29% in 2014 and 25% in 2015.

* The minimum rate of children's allowance will rise by €100.

* Cost of living wage increase of €4.08, which pensioners will also also be given in full.

* €300 allowance to elderly persons extended to those aged 78 and over.

* 30% cut in registration tax on Euro V vehicles and an increase of 10% in tax on Euro IV vehicles. Tax is to be removed or reduced for motorcycles.

* Car scrappage scheme reduced.

* Feed-in tariffs for PV users who sell electricity reduced, but term is extended.

* Reduced Gozo ferry fares for those who travel in winter and stay in Gozo for at least one night.

* Duty on petrol, diesel, up by 2c per litre.

* Average price of cigarettes to rise by 20c to 30c per packet.

* Property buyers to pay less stamp duty on the purchase of their ordinary residence.

* Stamp duty on houses inherited from parents removed.

* Stipend introduced for those who do voluntary work after tertiary education.

* Higher stipend for apprentices.

* Higher spending on sports including plans for a Rugby ground.

* Plan to help households save water. Assistance for repairs to wells, water systems in scheduled buildings.

See full details on these and other points of the Budget speech in the Budget section below.


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