News | Sunday, 18 January 2009

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Working mums told to wait for their tax break

Last year’s solemn budget promise of a tax-free year for mothers who gave birth after 2007 and kept their jobs or returned to work before 5 years, is still pending the drafting of a legal notice.
Working mothers who enquired whether they will see the tax cut reflected in their January pay cheque, were informed by their employers that since no legislation has yet been passed, companies are not yet in a position to automatically deduct the tax.
MaltaToday is informed the Inland Revenue department has advised companies to continue to deduct tax as normal and that a reimbursement will be given at a later stage.
A spokesperson for the Ministry of Finance confirmed with this newspaper that a legal notice is still being drafted to implement the budget tax cut. “We consider this measure as a very important one as it encourages women to re-enter the labour market. Therefore our intention is to implement it as soon as possible.”
But according to the ministry spokesperson, the government is still working out the details on how the tax cut will be implemented. “If there will be a need for refunds, this will be announced at a later stage.”
One working mother summed up her disappointment at the news. “When a new tax or tariff is introduced we have to pay for it immediately after the budget. But when a positive benefit is announced we are asked to wait.”

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