Prime Minister Robert Abela has pledged to reduce income tax in the next legislature by significantly widening the brackets which dictate how much tax people must pay. 

Addressing a press conference, Abela said this measure will leave a total of €66 million extra in people’s pockets, with low and medium income earners feeling most of the impact.

As a result of the changes, individuals will start paying tax after the first €10,800, up from €9,100. Parents will start paying tax after the first €12,500, up from €10,500, while the rate for married people will increase from €12,700 to €14,400.

Abela said this measure will be complemented with around €24 million a year in “generous” tax refund cheques that will be handed out every year of a new PL legislature. 

He estimated that, as a result of these measures, an average person is expected to see their annual take-home pay increase by some €255.

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