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”. The head of state, Giorgia Meloni, spoke of a “necessary turning point for the country”: now, having drawn the perimeter of the interventions, there are two years left to fill the
reform with legislative decrees that in no case can cause an increase in the tax burden, which means that for each intervention it will be necessary to find financial cover.
As Meloni explained to the Chamber, there are three lines of action: reducing the tax burden of citizens and companies; a new relationship between the State and the taxpayer; a real fight against tax evasion. The critics, on the other hand, were the unions that yesterday, 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 tomorrow could come to life on the same stage, where the leader of the FdI 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 is guaranteed (agricultural income, buildings, financial income, from work, self-employment, business and others).
The delegation also foresees the review of tax expenditures, which today amount to more than 600 items, and the equalization of the non-tax area of workers by 8,174 euros and pensioners by 8,500 euros. 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. In addition, 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. The rate of excise duty on energy products and electricity will be revised taking into account the environmental impact of each individual product with the aim of contributing to the reduction of emissions by promoting the use of products obtained from biomass or from renewable sources. VAT agenda – rationalizing the number and rates – and a gradual elimination of the Irap, without, however, being specified, weighing on the health needs or on the citizens’ income.
Still in the name of efficiency, stamp duty, 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. For collection, the goal is to gradually overcome the role, assigning collection activities to the Federal Revenue Service, suspending the sending of communications in August and December and simplifying access to payment methods in 120 installments. Sanctions for failure to make non-recurring payments have also been revised and made more proportionate to the contested conduct. With regard to administrative sanctions relating to income taxes, VAT, indirect taxes or municipal taxes, it will be necessary to “improve the proportionality of tax sanctions, reducing the burden and bringing it closer to the standards of other European countries”. As for criminal sanctions, emphasis will be given to the hypothesis of “the impossibility of complying with the payment of the tax, regardless of facts attributable to the subject”.
Source: IL Tempo
Emma Fitzgerald is an accomplished political journalist and author at The Nation View. With a background in political science and international relations, she has a deep understanding of the political landscape and the forces that shape it.
