Green light from the Council of Ministers to the bill enabling the tax reform, with the objective of “completely rewriting the current tax system launched in the 1970s” with the objective, within 24 months, of “simplifying and reducing the tax burden , encourage investment and contracting and establish a relationship between taxpayers and financial administration in a logic of dialogue directed between the parties based on the needs of citizens and companies”.
Giorgia Meloni, spoke of a “necessary turn for the country” and “a historic, organic and structural reform that has been expected for 50 years”. Now, with the perimeter of the interventions delimited, there are two years left to fill the reform with legislative decrees that under no circumstances will be able to cause an increase in the tax burden, which means that for each intervention it will be necessary to find financial cover. As explained by the Prime Minister of the Chamber, there are three lines he moves: reducing the tax burden of citizens and companies; a new relationship between the State and the taxpayer; a real fight against tax evasion.
On the other hand, they criticized the unions that, from the stage of the CGIL congress in Rimini, reiterated their request to “withdraw” the qualification law, fearing the possibility of a joint mobilization. Sparks that could come to life today on the same stage, where the head of government is expected.
With the reform of Irpef, explains the Ministry of Economy, horizontal equity is guaranteed, through the reduction of the tax burden, going from 4 to 3 rates and with the objective of a single tax for all, which continues to be the objective of the legislator. In addition, the rationalization and simplification of the entire Irpef system (agricultural, property, financial, employee, self-employed, business and other income) is guaranteed.
The delegation also foresees the review of tax expenses, which today add up to more than 600 items, and the equalization of the non-tax area for employees and pensioners. Workers will be able to deduct their social security contributions and expenses incurred, similar to what already happens with VAT numbers. With regard to companies, a reduction in the current IRES rate is foreseen for those who invest or contract.
The reform could promote the introduction of forms of tax exemption that favor investments and capital transfers in Italy for the promotion of economic activities in Italian territory. Stamp taxes, mortgage and cadastral taxes, special cadastral taxes and mortgage taxes disappear and, in their place, a single tax, possibly of a fixed amount. In addition, “with the establishment of the biennial agreement with creditors and the reinforcement of collaborative compliance, the rules for combating tax evasion are rewritten, which becomes preventive and no longer repressive”, explains the Government.
The Council of Ministers also gave the green light to the reform of differentiated autonomy, “now the bill is preparing to follow the path of consideration by Parliament, which will therefore be fully involved in this process”, explained Minister Roberto Calderoli. Among the other measures approved yesterday is also the bill establishing the Holocaust museum in Rome, for which ten million euros have been earmarked.
Source: IL Tempo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
