Italian VAT rise to 22% on 1 Oct 2013 faces delay to 1 Jan 2014
- 26 September 2013 | Richard Asquith
The Italian government is considering the planned 1 October 2013 Italian VAT rise be delayed again. The new implementation date would be 1 January 2014.
There will be no changes to the 4% and 10% reduced rates.
Since the Italian VAT rise was first delayed from 1 July 2013, there has been doubts that it would go ahead as the warring parties in the coalition had been fighting over its future. The government is attempting to keep the 2013 budget within the 3% GDP deficit limit of the Euro-currency club. It is currently heading towards 3.1%.
The Berlusconi centre-right party had threatened to bring down the coalition, led by Premier Leta. Further doubts were created earlier when the much disliked property tax was scrapped, costing around €4bn per annum.
The average EU VAT rate is now over 21%. France is going to raise VAT from 19.6% to 20% in 2014.
The European Union's EC had been closely observing the situation, and had been pushing behind the scenes for a rise to ensure the stability of the Euro currency.