Robert Abela has announced further details on how a Labour government would widen tax bands, saying it would put €66 million back in people's pockets.
Parents will not pay income tax on the first €12,200, up from the current €10,500. Singles will not pay income tax on the first €10,800, up from the current €9,100 and married couples will not pay income tax on the first €14,400, up from the current €12,700.
He had already announced the initiative at the weekend, hours after calling the election but had not outlined the new tax bands.
Abela said he could make the move because the economy had performed well in previous years and is expected to do better in the future.
Therefore, a labour government will be able to reduce income tax and raise the country’s GDP from €14 billion to €20 billion within the next legislature.
He also promised “more generous” income tax refunds, which will come in the form of a yearly cheque but did not give further details.
Every person will be benefiting from between €255 and €365 a year in income tax reductions and refunds, he said. Finance Minister Clyde Caruana pledged the sum would eventually go up to at least €700 as the economy recuperates in the coming years.
Families will be paying at least €255 per year less in income tax, he said.
The Labour leader also said that the corporate tax for companies will be brought down from 35% to 25% for the first €250,000 profits. This means that a business that makes €250,000 in profits will pay €25,000 less in corporate tax.
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