Tax refunds on the way

People who worked in 2017 will start receiving a tax refund in the coming days ranging from €40 to €68 depending on the applicable tax rate

Finance Minister Edward Scicluna
Finance Minister Edward Scicluna

Tax refunds totalling €11.5 million will be sent out over the coming days, Finance Minister Edward Scicluna announced.

More than 200,000 people are expected to benefit from the Budget measure.

People who earned up to €60,000 in 2017 will receive a refund ranging between €40 and €60 for singles, €44 and €68 for married individuals, and €40 and €64 for parents.

The measure was an electoral pledge and this is the second year it is being implemented.

Scicluna said the refunds were based on the tax returns received last year for the base year 2017.

People who paid no tax because their income fell below the taxable threshold will receive the highest amount.

 “The government opted for this type of tax relief because the traditional method of adjusting the tax brackets would have benefitted most those on the top rungs, while having no impact on those who pay no taxes,” he said.

Scicluna said this was one of the targeted measures adopted over the past five years to inject more money in people’s pockets and reduce the at-risk-of-poverty rate.