Italy still debating 1 July 2013 1% VAT rise
- 18 June 2013 | Richard Asquith
The various political parties are still arguing over the go ahead of the planned Italian 1% VAT rise on 1 July 2013.
The People of Freedom party, led by the ex-PM, Silvio Berlusconi, contends that the austerity VAT rise is not necessary. It also argues that the IMU property tax is not required. These combined measures would leave the Italian governments short by €8billion of its deficit cutting target. The Minister of Finance of the current government had said that the VAT rise was unavoidable.
The proposed Italian VAT rise was planned by the last Italian government at the height of the Euro crisis in 2012. There had already been another 1% Italian VAT rise to 21% in 2011 to reassure panicked financial markets.