Gibraltar Budget Measures Reduce Burden Of Taxation

Panorama

19 June 2001

This story is reproduced by kind permission of Panorama at: http://www.panorama.gi

In last Wednesday's Budget, the Government announced a series of measures to reduce the burden of taxation. Speaking in the House of Assembly, The Chief Minister said the Government remained committed to progressive and sustainable reduction in personal taxation.

Three elements of policy are (1) simplification and modification of current tax bands, (2) system of tax credit for lowest paid thus focusing specific extra cuts to the low paid, and (3) gradual lowering of highest tax rate. As a result, the 40% tax band is abolished, and other bands adjusted to achieve a net reduction of between £75 and £125 per annum, to benefit about 5,550 taxpayers.

Tax credit was made payable in cash to taxpayers with earned income of less than £7,000 per annum. This is worth £100 per annum to about 6,400 taxpayers. There was a reduction in top tax rate of 50% to 48%, which will benefit about 1,500 tax payers. And personal allowances are set to rise by amounts in excess of inflation.

Meanwhile, computer hardware and software will be free from import duty for at least until 31 March next year to promote information technology. Other import duty measures include the reduction from 12% to 6% on luggage, handbags and small leather goods, as well as on remaining haberdashery items such as sewing needles etc.

Full details of Gibraltar's Budget can be found at: http://www.panorama.gi/budget.htm

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