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.