Wednesday, November 24, 2010

Budget 2011 4 Year Plan

Taxation Measures to be Introduced:
  • Tax credits and bands to be reduced by 16.5%, which will reduce the entry point of income tax to approx E15,300 from E18,300 in 2010 tax year
  • Minimum wage to be reduced from E8.65 to E7.65
  • Implement pension-related tax changes to yield E700 million, with E240 million in tax savings on the public sector pension related deduction.
  • Abolish/curtail a range of tax expenditures yielding E755 million.
  • Increase the standard rate of VAT from 21% to 22% in 2013, with a further increase to 23% in 2014. These changes will yield E620 million.
  • Introduce a local services contribution to fund essential locally-delivered services. This will yield E530 million.
  • Increase the price of carbon gradually from E15 to E30, yielding E330 million.
  • Reform capital acquisitions and capital gains tax to yield an additional E145 million.
The plan will reduce the income tax structure back to 2006 levels.

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