Income tax is being cut in Gibraltar, which is good news for the thousands of frontier workers who cross the border every day. While the rest of the world seems to be raising taxes, it's nice to see Gibraltar doing the opposite. I've not proper;y calculated how much better off I will be but I think it will be around £400-500 per year.
Here's the details from the budget announcement in the Gibraltar Chronicle:
- All taxpayers on Allowance Based System will receive tax cut of at least
£300 or 2% of tax now paid, whichever is greater. This will be received by
the 2500 taxpayers who are already paying an effective rate of tax lower
than that that will be paid by Gross Income Based taxpayers.
- 1900 taxpayers presently on income Based System will now be better off
under the Gross Income Based System and will receive more than £300 or
- In the Gross Income Based System the top rate reduced to 28%, the
bottom rate is lowered to 6% and the income bands are changed,
delivering tax cuts of £160 to £1460 to 13,450 taxpayers.
- Effect of above tax cuts and other changes is that
- Everyone earning up to £8,000 p.a will continue to pay zero tax
- Everyone earning up to £15,000 p.a. will now pay tax at an
effective rate lower than 11%
- Everyone earning up to £20,000 at an effective rate lower than
- Everyone earning up to £25,000 at an effective rate lower than
- Everyone earning up to £40,000 at an effective rate lower than
- The maximum effective rate of tax in Gibraltar is now 24.99% (not
reached until income of £300,000) and the rate begins to fall.
- As a result of these tax cuts
- 43% of people who pay tax now do so at an effective rate less than
- 85% of people who pay tax now do so at an effective rate less than
- 100% of taxpayers who pay tax now do so at an effective rate less