Updated - Government intends to stick to tax-cutting plan

Updated - Adds video comments - Finance Minister Edward Scicluna said this morning that the government is planning on continuing with the three year programme of top rate income tax cuts announced by the former government and implemented by the Labour administration in this year's Budget. Speaking during the launching of the pre-Budget document, Prof. Scicluna said the pre-Budget document showed that the government was on the right track. That included planning for the continued widening of tax bands and reducing the top rate of income tax. However, he said, no finance minister could ever say 'definitely' or 'never' because much depended on prevailing circumstances. So far, however, there was no reason preventing the government from continuing with the tax programme, he said. The tax rate for those earning up to €60,000 was this year reduced from 35 per cent to 32 per cent. As from next year, the rate is set to go down to 29 per cent and drop further to 25 per cent in 2015. The 35 per cent rate will continue to apply for those earning over €60,000. PENSIONS - THIRD PILLAR SCHEMES TO BE INTRODUCED On pensions, Prof Scicluna said the government planned to introduce an optional third...