Kurt Sansone
The top income tax rate was left unchanged at 35 per cent despite an electoral promise to reduce it to 25 per cent by the new administration’s first budget.
Announcing minor changes to the income tax bands the Finance Minister insisted the changes were prudent not to threaten the financial sustainability of the country.
The cuts in income would leave a total of €12 million in people’s pockets, which amounts to paltry yearly reductions for the different income brackets.
The non-taxable bracket has been increased to €11,900 for those opting for a joint computation and €8,500 for single computation.
The yearly savings people will see during 2009 will range between €53 to €153 depending on income for those opting for single computation and between €75 to €215 for those choosing a joint computation.
The marginal reduction in income tax is part of government’s drive to reduce the tax burden on income and shifting it onto consumption.
