Domenica, 21 Ottobre 2018

Government bows to party pressure, agrees to rewrite budget


Rome, November 1 - Premier Mario Monti's government
has agreed to a substantial rewrite of the budget measures in
its so-called Stability Law bill in the face of opposition from
the main parties supporting the emergency administration.
The biggest change is that a 1% cut in the two lower bands
of income tax is to be scrapped to avoid an increase that would
have taken the second-lowest bracket of VAT up from 10% to 11%
next year.
However, a 1% increase in the top band of VAT, taking it up
to 21%, remains.
The government will also scrap reductions in tax
deductions for the current tax year, which would effectively
have made this a retroactive measure, saying the reductions will
now come into force in 2013.
Ex-premier Silvio Berlusconi's People of Freedom (PdL)
party and the main centre-left Democratic Party (PD) said the
agreement on changes to the bill was a step forward.
The government said after presenting the bill, which also
features a series of cuts hitting sectors including health and
eduction, earlier this month that it was willing to accept some
amendments during its passage through parliament as long as the
bottom line is not affected.
Business associations and consumers have joined many
politicians in raised concerns that increasing VAT will further
depress the Italian economy after austerity measures Monti's
government passed last year deepened the recession Italy is

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