“Italy is running again”. The premier, Giorgia Meloni, says it immediately after the approval of the Budget Law, launched in the middle of the night after a council of ministers that lasted three and a half hours. «An important and courageous economic maneuver in support of citizens with particular attention to low incomes and categories in difficulty».
The measures, as Economy Minister Giancarlo Giorgetti explains in a note, are based on a “prudent and realistic” but also “sustainable for public finance” approach. Now the text will have to be approved first by the Chamber and Senate and then sent to Brussels by 30 November. The EU Commission will give its opinion and, once any indications from the EU have been implemented, the law will have to be definitively approved by Parliament by 31 December.
It’s about a maneuver worth almost 35 billionwhich will be presented by Giorgia Meloni at a press conference at 10. Here are the main measures.
The cut in the tax wedge should go entirely to workers, and should be 2 points for incomes up to €35,000, and 3 points for incomes up to €20,000. For the self-employed, the 15% flat tax remains, with the income threshold increased from 65,000 to 85,000 euros, and an incremental flat tax is also introduced, with 15% applied only on the increase compared to the highest income declared in the three years previous. The VAT cut on bread and milk has been skipped, but a “savings card” is being issued by municipalities to families in difficulty. The VAT on sanitary napkins and diapers and baby products drops to 5%, which is now 22%.
Cancellation of tax records
The folders notified up to 2015, with an amount of less than 1,000 euros, are cancelled. Tax payments not made in 2022 are paid in installments without additional penalties and interest for those who have not paid taxes due to the covid emergency, expensive bills and economic difficulties.
For companies that hire under 36s with a fixed-term contract, a contribution reduction of up to a maximum of 6 thousand euros is envisaged.
More expensive cigarettes
The increase in the price of cigarettes will yield 138 million and the revaluation of the assets and shareholdings of the companies with a revenue of 1,028 million.
Stop of the basic income starting from 2024 for the “employable”. Until then, a year of “buffer” is foreseen to introduce them into the world of work, with special training courses, considered mandatory. Coverage will drop from 12 to 8 months. Starting from 2024, the basic income will be canceled and will be replaced by a new measure, as part of a more comprehensive reform.
The government confirms the zeroing of system costs. The one-off bonus for low incomes, calculated on an Isee that rises from 12,000 to 15,000, to pay bills is also confirmed, and a higher rate is envisaged for the tax credit intended for so-called energy-intensive companies , which is raised from 40 to 45%, while for those who are not (consumption under 16.5 kilowatts), the rate rises from 30 to 35%. The extended installments for those who are in difficulty with payments, up to 36 months.
Change option for women, which allows female workers to obtain a pension treatment with significantly reduced requirements. The measure is extended by one year, but is also linked to the number of children: you retire at 58 with two or more children, at 59 if you have only one child.
Increased single allowance
The increase also concerns those who have a first child, and doubles the flat-rate increase of the single universal allowance for large families starting from the third child (from 100 to 200 euros).
The Budget Law also provides for a month’s leave for the first six years of children, which is added to the other measures already in force regarding parental leave.
A provision is envisaged to block the automatic increase envisaged by the Highway Code, which from January 2023 would trigger an 11% increase.
The concessions for the purchase of a first home for young people under 36 are also extended for 2023.
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Source: Vanity Fair