Issue link: https://maltatoday.uberflip.com/i/585015
8 Budget 2016 maltatoday, TUESDAY, 13 OCTOBER 2015 TAXATION WIN a copy of the newly launched book Wild Flowers of the Maltese Island To win a copy of this unique book tick the right answers: Tick the names of Maltese wild plants? ❒ Maltese fleabane ❒ Sulla ❒ Giant Fennel ❒ Frog Orchid ❒ King protea Send your answers by 15 October to: MediaToday, WIN A BOOK FROM BDL Vjal ir-Rihan, San Gwann By Edwin Lanfranco & Guido Bonett published by BDL FOLLOWING the implantation of the previous government's income ta x reduction from 35% to 25%, the 2016 Budget introduces f ur- ther cuts for some 160,0 0 0 people who did not benefit from these cuts. W hile confirming that people on a minimum wage will remain ta x exempt, single persons earn- ing up to €9,10 0, couples with a joint declaration not exceeding €12,70 0 and parents declaring up to €10,50 0 will be also exempt from ta x. Moreover, single people earn- ing up to €9,50 0 will benefit from up to €90 in cuts while parents declaring a single income of not more than €21,20 0 will save up to €105. Couples declaring a joint income of up to €28,70 0 will save up to €120 in ta x cuts. Married couples who declare their income sepa- rately will jointly save up to €180. Moreover, married couples who both earn up to €21,0 0 0 will enjoy a ta x cut of up to €210. Athletes and coaches enjoy lower tax rate The income ta x reform intro- duced in the last t wo budgets for football and water polo players has been extended to all athletes and coaches in all sport disciplines. They will now enjoy a 7.5% in- come ta x rate while in a drive to encourage sport activit y and fight obesit y government has decided to cut VAT on g ym memberships, football nurser y enrolments and other activities from 18% to 7%. Up to 160,000 to enjoy tax cuts In-work benefit extended to families with one breadwinner LAST year, government introduced in-work benefits for employed par- ents earning between €10,000 and €20,400 with children below the age of 23. While low-income fami- lies and single parents will continue benefitting from a maximum an- nual grant of €1,200 per child, the scheme has been extended to fami- lies in which only one person is in employment and earns between €6,600 and €12,700. Low-income families with only one breadwin- ner will benefit from a maximum of €150 per child. Some 3,700 have so far benefitted from the scheme through which single parents are paid a maxi- mum annual grant of €1,200 per child if they earn between €6,600 and €15,000. Families with two breadwinners earn up to €1,000 per child. PENSIONERS Low-income pensioners to get increase AS from January 2016, low-in- come pensioners will benefit from an increase of up to €9 a week. The reform, which will cost gov- ernment some €5 million, will see low-income pensioners aged 75 and over will get a €8.92 a week increase while under 75s will get €8 a week. This reform will benefit some 12,000 pensioners and is the first step in government's plans to have all pensioners earn 60% of the national median income by 2027. Some 12,000 pensioners will benefit from the reform, which fits within government's plans to eradicate poverty. Starting from next year, the low- est pension will stand at €7,280 while married pensioners who will not benefit from this reform will get a €4.15 weekly bonus over and above the COLA increase. As in previous years, people over 75 will receive a grant of €300. People who decide to remain in employment in the private sector despite reaching pensionable age will receive an increase for every year they stay in work without ap- plying for a pension. Moreover, Finance Minister Edward Scicluna yesterday an- nounced that government would be introducing other recommen- dations put forward by the pen- sion reform working group. These include an increase in contribu- tions credited to parents who take temporary breaks to raise chil- dren and an increase of qualifying years of National Insurance con- tributions from 40 to 41. Scicluna also said that financial institutions would soon be launch- ing third-pillar pensions following the introduction of the regulatory framework earlier this year. Pilot project for live-in carers Government will be launching a pilot project through which up to 167 pensioners can employ a full- time or part-time professional car- er and have 50% of the minimum wage refunded by government. This is estimated to cost less than a third of what government forks out to keep pensioners in a care home. This scheme will be capped at €1 million and is only applicable to pensioners on the waiting list for elderly care homes. Moreover, government will be merging two existent schemes; the Carers pension and Social Assist- ance for Carers, into one scheme. Tax exemptions for Community Chest Fund donators WITH effect from year of assess- ment 2015, 100% of donations of at least €2,000 to the Malta Com- munit y Chest Fund will be al- lowed as a deduction against the taxable profits of companies.