The Alternate Minister of Finances Nantia Valavani is aiming to address some of the injustices in tax legislation that have been implemented in recent years, via a ‘mini’ tax bill that will soon be submitted in Parliament.
A high-ranking Finance Ministry official told To Vima that the bill will include beneficial provisions for taxpayers on low incomes and the families of the victims of the Norman Atlantic tragedy.
The bill will also reduce the tax on gift donations, especially parental donations. Mrs. Valavani recently argued in Parliament that it was ‘callous’ to tax donations of parents towards their adult children with a 10% rate, especially when the funds in question have already been taxed.
Mrs. Valavani hinted that the 2% discount for taxpayers who pay their income tax in one lump sum may increase. Should this be the case though, it will likely come into effect in the second half of 2015, meaning that it will affect tax statements for 2016.
Finally, the bill will also streamline the taxation employees who also receive income from self-employment. Changes will also be introduced on the imputed income of farmers who use their own land.
These planned reforms and changes are going to affect tax returns that have been filed and will be submitted until the end of June. So far only 690,055 tax returns have been filed, from an estimated total of about 6 million tax statements that are due.
