After three months of negotiations with Europe, a few hours after the trap of the provisional exercise and without a real parliamentary examination, the 2019 maneuver has reached its end. With the last yes to trust arrived overnight with 327 votes in favour, 228 against and one abstention, the text is that of the maxi-amendment passed last weekend in the Senate, where the parliamentarians had expressed themselves without even having had time to read the whole the measure. Tussle in the courtroom, controversies and protests in the streets marked the last hours of the Chamber's work. In the afternoon, the final vote on the 2019 Budget Law arrived: 313 yeses, 70 nos. They voted against Forza Italia and Fratelli d'Italia. Pd and Leu did not participate in the vote. At the proclamation of the result, hugs between Prime Minister Conte and the ministers. Tomorrow, Monday 31, the sending of the text to the Quirinale. The parliament fires a text that will still have to be completed in essential parts: the basic income and the pension reform with Quota 100, in fact, have yet to be written. A single decree will probably be issued for both measures in January. Also to be changed is the rule on the increase in IRES for the non-profit sector.
From VAT clauses to investments, from pensions to amnesty through tax relief and tax increases of various kinds, there are various innovations introduced by the Budget Law. Let's see the main ones.
VAT: THE SAFEGUARD CLAUSES INCREASE
The safeguard clauses on VAT rise from 13,7 to 23,1 billion for 2020 and from 15,6 to 28,7 billion for 2021. The final bill is 51,8 billion. If we don't find this money, the reduced VAT rate will go from 10 to 13% in 2020, while the ordinary one, currently at 22%, will rise to 25,2% in 2020 and 26,5% in 2021. With the new budget law these percentages have also increased, given that last year's maneuver provided for an increase in the ordinary rate to 24,9% in 2020 and 25% in 2021.
INVESTMENTS: CUT MORE THAN 5 BILLION FROM THE PUBLIC FUND
The public investment fund drops from 9 billion to 3,6 billion. In detail, the allocation for 2019 is reduced from 2,75 billion to 740 million, that for 2020 from 3 to 1,26 billion and that for 2021 from 3,3 to 1,6 billion.
CITIZENSHIP INCOME AND SHARE 100: 5 BILLION LESS IN 2019
Compared to the original version of the maneuver, the funds intended to finance basic income and quota 100 decrease overall by 4,7 billion for 2019. In particular, the fund for basic income falls from 9 to 7,1 billion (but will rise to 8,05 billion in 2020 and 8,31 billion in 2021), while that for the 100 share falls from 6,7 to 3,9 billion (to then surge in the following years: 8,3 billion in 2020 and 8,6 in 2021).
AMENDMENT: BALANCE AND EXCERPT FOR ISEE UP TO 20 THOUSAND EUROS
Chapter pardon. All taxpayers - even professionals - with an ISEE of up to 20 euros will be able to pay off their debts to the tax authorities, benefiting from very substantial discounts and zeroing of interest and penalties (the collection premium will remain instead). The amnesty can be paid in a single solution by 30 November 2019 or in five installments. As for the discounts, 16% of the amount due will be paid with Isee up to 8.500 euros, 20% with Isee up to between 8.501 and 12.500 euros and 35% with Isee between 12.501 and 20 thousand euros.
PENSIONS: BLOCK OF REVALUATIONS FROM 1.500 EUROS
A new squeeze is coming on the inflation adjustment of pensions above 1.500 euros gross per month. Also for the next three years, full indexation will only be granted to pensions up to three times the minimum (today 1.522,26 euros, which will rise to 1.539 next year). Beyond this threshold, the adjustment will be progressively reduced as the allowance increases, according to the following scheme:
- 97% indexing on the part exceeding 3 times and up to 4 times the minimum;
- 77% indexing on the part exceeding 4 times and up to 5 times the minimum;
- 52% indexing on the part exceeding 5 times and up to 6 times the minimum;
- 47% indexing on the part exceeding 6 times and up to 8 times the minimum;
- 45% indexing on the part exceeding 8 times and up to 9 times the minimum;
- 40% indexing on the part exceeding 9 times the minimum.
The measure will allow the State to save 3,6 billion (before taxes) in the three-year period 2019-2021.
PENSIONS: CUT TO THE "GOLDEN" THOSE
For the so-called "golden" pensions, i.e. those worth more than 100 euros gross a year, there is a cut that will last five years. In this case, the scheme is as follows:
- 15% cut on the portion exceeding 100 euros and up to 130 euros per year;
- 25% cut on the portion exceeding 130 euros up to 200 euros per year;
- 30% cut on the portion exceeding 200 euros and up to 350 euros per year;
- 35% cut on the portion exceeding 350 euros and up to 500 euros per year;
- 40% cut on the part exceeding 500 thousand euros a year (only 23 people in Italy receive such a high treatment).
The fully contributory pensions, the invalidity pensions and the treatments granted to survivors, victims of duty or terrorism will not suffer cuts. No check may in any case fall below 100 euros.
The savings guaranteed by this measure are much lower than those produced by reduced indexation: 76 million in 2019, 80 million in 2020, 83 million in 2021, 87 million in 2022 and 90 million in 2023.
PENSIONERS: TAX DISCOUNT FOR THOSE WHO MOVE TO THE SOUTH
Whether Italian or foreign, retirees who have been resident abroad for at least five years and who move to a country in Southern Italy with fewer than 20 inhabitants will enjoy a tax advantage for five years: a flat-rate substitute tax of 7% on all income of any category received from foreign sources or produced abroad. Taxation on real estate, current accounts, deposit accounts, savings accounts and financial products held abroad has also been eliminated. The proceeds of this measure will be allocated to universities in the South where there is at least one department in technical-scientific and sociological disciplines.
PA AND UNIVERSITIES: RECRUITMENTS POSTPONED
Recruitments in the public administration will remain frozen until 15 November 2019, while those in public universities until 2019 December XNUMX, with the sole exception of researchers who will see their contracts expire before this deadline.
SCAMMERS SCAMMED: REFUNDS WITHOUT CONSOB ARBITRATION
There will be no need for Consob arbitration to grant refunds to savers defrauded by banks: the favorable opinion of a commission set up at the Ministry of Economy will suffice. Repayments will be 30% for shareholders and 95% for bondholders. People with an Isee under 35 thousand euros will have priority.
COMPANIES: 32% REDUCTION ON INAIL CONTRIBUTIONS
The 32% relief on Inail contributions paid by companies has been confirmed. The reduction is worth a total of 410 million in 2019, 525 million in 2020 and 600 million in 2021.
IRES ON NON-PROFIT: STANGATA AND REVERSE
The maneuver cancels the Ires subsidy for non-commercial and non-profit entities, doubling the rate from 12 to 24%. But following the criticisms from the Catholic world and from the entire voluntary sector, the Government has announced that in January it will intervene with a new provision to cancel this burden. 120 million euros will be needed.
3% WEB TAX ON DIGITAL SALES
Another tax novelty concerns the web tax, introduced by the last maneuver but never implemented. The new Budget law plans to relaunch a 3% tax on digital revenues for companies with a turnover of at least 750 million euros and sales in Italy of at least 5,5 million euros.
GAMES: TAXES INCREASE
The single tax levy on gaming machines is still increasing. The rate, already increased to 1,25% by the dignity decree, rises further to 1,40%.
PUBLISHING: CUT IN NEWSPAPERS AND BONUS FOR NEWSSTANDS
The tariff concessions for publishing companies are reduced by 28,5 million euros, while for contributions to newspapers and periodicals a process is started that will lead to total cancellation. However, a tax bonus of up to 1.500 euros for newsstands is on the way.
DISPOSAL: INCREASE THE PLAN FOR REAL ESTATE THOSE
The state aims to sell public properties for 1,6 billion euros in 2019. The target value has more than doubled: it was 640 million before.
BEACH ESTABLISHMENTS: CONCESSIONS EXTENDED
The Bolkestein directive for the tendering of beach concessions will not apply for the next 15 years. The postponement is also extended to concessions for residential and housing purposes.
DECODER: PURCHASE INCENTIVES
Finally, the maneuver establishes a fund of 151 million euros to encourage the purchase of TVs and decoders compatible with the new digital terrestrial standard (DVB T-2) imposed by the transfer of frequencies for 5G. The incentives will be valid until 2022.
