(Finance) – An extraordinary salary such as the thirteenth month could be subject to a lower taxation. This – explained the Deputy Minister of Economy Maurizio Leo in a hearing before the joint Finance commissions of the Chamber and Senate on the tax reform – is one of the hypotheses the government is working on “to put more money into the pockets of Italians in the last month of the year”. However, nothing is decided yet. “It’s something that already exists in the delegation, we have to experiment and see how to build it. It’s all to be evaluated on the basis of resources” specified the Deputy Minister.
“An idea – continued Leo – could be that of detax the thirteenth, we need to find the financial matches. But that could be a benefit that is given to employees at a delicate time of the year. This is an idea, let’s see if the idea can be made concrete”.
Extra Profits – “Unfortunately, the mechanism of extra profits based on VAT flows has not hit the mark. Compared to the expected 11 billion, we have collected only 2.8. So there is a difference of 8. This is perhaps a concern and we will see how and if it goes blanket,” Leo said. On the other hand, the hypothesis of a tax on the extra profits of the banks is not currently being studied.
Fringe benefits – The fringe benefits – said the Deputy Minister – “today are fixed at 258 euros, which are the old 500,000 lire. In yesterday’s provision, and this we plan to ensure that this thing is stabilized, we said: if the employer gives fringe benefits, especially for bills or other emergencies, up to 3 thousand euros, the worker deducts them and benefits from them”.
Flat Tax – “We don’t want to make fun of anyone. We have to get closer to the flat tax by the end of the term” said Leo.
Dry coupon – For the real estate income sector – explained the Deputy Minister – “we would like to introduce a flat rate coupon also on non-residential and commercial properties”.
Tax wedge cut – “We haven’t seen the text of the labor decree, but I think we can get to this figure – said the deputy minister of the economy, answering a question on the value of the new wedge cut of a further 4 points that the MEF has estimated at around 100 euros on average -. We’ll do some core sampling with the State General Accounting Office. I think it’s a likely figure”.
Irpef rates – “The first intervention, compatibly with the resources that will be found and recovered, and also finding resources with the next budget law, will be to restore the personal income tax, the Irpef, which presents a series of critical issues: we will do this by redesigning the entire personal income tax process, working on different income categories – said Leo – We will take action as early as 2024 to bring us to three brackets from the current 4 and three rates”. According to the Deputy Minister, the resources to reduce personal income tax can be found on the tax credit front. “The most relevant item and on which important results can be obtained is that of tax credits: we have 227 tax credits, which amount to about 36 billion in Cuba. I think we can clean these up, to make sure that the resources saved to serve the reduction of personal income tax, but – said Leo – this will be done compatibly with financial resources”.
Tax evasion – “Where there is so-called evasion out of necessity, administrative sanctions can be applied but not criminal ones – said the deputy minister of the Economy -. An intervention which, however, to avoid controversy we must entrust to the sensitivity of parliament”. Data in hand Leo stated that last year there was a recovery of 20 billion for the fight against tax evasion. “The financial administration – he continued – is doing its duty, but the problem here is that tax evasion is always high, ranging from 75 to 100 billion. If you don’t change direction, you’re not going anywhere: that’s why you have to go to these methodologies ex ante, arrangement with creditors and cooperative compliance. The administration is doing its job, admirably, but we must help it change the assessment mechanisms”.
Unique texts – The materials envisaged by the delegation for the tax reform “are consolidated texts and the code. We are already working on the consolidated texts and we think quickly, already at the beginning of the year, of being able to have available organic texts on the matter on which then the changes will be dropped. If we already do a reorganization it is already a step forward in the tax system with a view to then making the tax code” said Leo.
Web Tax – “On digital taxation, today we have the web tax which gives us a not very significant revenue, 300 million. But we cannot go beyond that mechanism because here there is a stone guest in this matter who are other countries beyond the Atlantic, which invite us to be cautious because if we increase the web tax there could be retaliation on duties – said the Deputy Minister of Economy – So the path that must be pursued is that of the global minimum tax which is now envisaged at European level There is another trend under study. Our goal is to move with the utmost caution”.