Italy Passes Austerity Package

December 23, 2011 Taxation in Italy

Austerity Package PassedROME – Italy has approved its long discussed austerity package, which introduce new taxes and changes to economic policies.

At a session of the Senate of Italy on December 22nd, Italian policymakers gave final approval to a proposed austerity package aimed at eliminating the country’s budget deficit by 2013 and injecting new life into the economy.
The austerity measures will include a new tax on all real estate in Italy, including residential and commercial properties.

Also, the national retirement age will be raised to 66 for men and 62 for women.

The government will also implement several new initiatives and programs aimed at curtailing the occurrence of tax evasion in Italy.
In an effort to directly stimulate the economy and raise employment levels, the government will now offer tax incentives to businesses which offer permanent employment contracts to women or people who are under 35.

According to the Prime Minister of Italy Mario Monti, the new austerity package applies new tax burdens equally across all taxpayers. He also explained that the measures are aimed at not only cutting down spending but also spurring growth in Italy, and will allow the country to “hold its head high” in the new year and throughout the ongoing economic crisis in Europe.

Photo by FriendsofEurope