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Low-paid hit by tax changes - MPs

Written: 7th April, 2008

The decision to abolish the lowest income tax band penalises childless low-paid people, MPs have said.

The Treasury Select Committee said the "main losers" could lose out by as much as £232 a year.

Committee chairman John McFall said they were an "unreasonable target" for the tax simplification measure.

Business Secretary John Hutton has said there will be no rethink on the 10p rate, despite unhappiness among some Labour MPs.

Standard income tax has been cut by 2% to 20% and tax credits increased, but the lowest 10p band has been scrapped entirely.

Source BBC news

 

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