John Andrews, chairman of the Low Incomes Tax Reform Group, said: 'The political pressure has been building to do something for pensioners and we assess that the time is right for a reforming Chancellor to make some bold moves.'The Low Incomes Tax Reform Group was set up by the Chartered Institute of Taxation to help pensioners and people with low incomes get a fairer deal from the tax system. Two successive annual reports by the group have highlighted areas where the Chancellor can take action on the pensioners' behalf. The group is pressing for three main recommendations. A tax exemption certificate should be considered in order to take the poorest pensioners out of the tax system completely,personal allowances relevant to pensioners for the tax year starting April 2000 should be announced before Christmas to avoid over-payments being imposed upon them and the complex tax rate regime that pensioners face should be simplified.
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