Implementing the flat tax in Italy appears “unrealistic”. The warning to the Government comes from the Bank of Italy which puts under the lens one of the measures indicated by the executive as legislative goal.
Flat tax, something is wrong
In particular, the objective set by the delegation of progressively reaching a rsingle rate systemthe so-called flat tax, together with a reduction in the tax burden, a model is considered which could, however, “be unrealistic for a country with a large welfare system, especially in the light of public finance constraints”, observes the head of the Bank of Italy’s tax assistance and consultancy service Italy Giacomo Ricottas in a hearing in the Chamber also acknowledging the risk that, pending the introduction of the flat tax, “the extension of the replacement regimes” can “reducing the fairness of the system”.
The warning of Bank of Italy
Findings to which Fdi looks carefully but the delegation, is the reasoning, is still to be composed. The flat tax – with respect to which the League is pressing most of all – is in the center-right program and, they assure the premier’s party, will be carried forward, even if it remains to be seen how the process of delegation in Parliament will develop. “From Bank of Italy however – FdI parliamentary sources are keen to underline – many too positive remarks.
Roofing knot
Palazzo Koch it also raises other doubts, starting with the coverage necessary to finance the interventions. “Currently coverage is provided only for overcoming Irap through the new surcharge on Ires”, observes Ricotti. But many of the planned interventions “will lead to revenue losses”. And the idea of the government to resort to the pruning of tax expenditures por finding resources is not entirely convincing: “it is not clear which tax incentives will be the object of the rationalization, nor therefore the entity of the resources that can be recovered”. Hence the need, is the call of via Nazionale, that the fiscal delegation “find the appropriate coverage.
