Il VAT increase there will be, but only by one point. An increase halved compared to forecasts, which will also allow a slight cut of the Ipef. From next July the value added tax will go up 10 to 11% and 21 to 22%; at the same time, however, the lower personal income tax rates will decrease by 23 to 22% for the bracket up to 15.000 euros e by 27 to 26% for that up to 28.000 euros. These are the main innovations introduced by the Government with the new stability law, launched last night after a Council of Ministers that lasted eight hours.
The provision is valid in all ten billion euros and it also contains many other measures: new cuts in health care, the Tobin tax on financial transactions, the reorganization of concessions, payment of public debts with the proceeds of disposals. And again: Imu to the Church, cuts to state and special statute regions, a fund for exodus workers. Finally, the long-awaited anti-corruption commissioner is born, who was at the center of just two days ago a clash within the Executive.
Austerity “is not a vicious circle – said the premier Mario Monti in the press conference at the end of the CDM -. Budgetary discipline pays off and pays off because it has allowed us not to have to constantly chase the economic situation. With last night's decisions in this 'very brief' Council of Ministers we wanted to give a clear signal that when there are signs of stabilization, some relief can be afforded. We gave this signal with the start of the personal income tax reduction and we hope that the Italians will see in this series of budgetary policy decisions, which is not a change of course, the fact that that course makes sense, that it contains elements to give benefits and when conditions permit, the potential hypothetical benefits can become concrete”.
Let's now see what are the other main measures introduced by the stability law in addition to the changes to personal income tax and VAT.
HEALTHCARE CUTS
When fully operational, the new cuts to the national health service will amount to one billion, but not all of them will arrive next year.
TOBIN TAX
The new tax on financial transactions is born, from which, however, government bonds will be excluded. Economy Minister Vittorio Grilli explained that the government has decided to introduce the Tobin tax "immediately", which will be determined on the basis of agreements made at European level, even if adjustments are not excluded.
ANTI-CORRUPTION COMMISSIONER
In the end, the Anti-Corruption Commissioner, who will preside over the Commission for the evaluation, transparency and integrity of public administrations, flows into the stability law. The establishment of this new figure had been at the center of a small case that broke out between the undersecretary of the Prime Minister Antonio Catricalà and the Minister for Public Administration Filippo Patroni Griffi, supported by the Minister of Justice Paola Severino.
IMU TO THE CHURCH
The text of the law on IMU for non-commercial properties, therefore also those owned by the Church, has been modified in order to define the regulatory framework "in time for the annual tax period", which begins on 2013 January XNUMX The first regulation had been rejected by the State Council.
STATE CUTS
Blockade of contracts confirmed until 2014. For 2013-2014, the contractual holiday allowance will not be paid either, which will return in 2015, but will be calculated on the basis of programmed inflation.
EXODATES
"The government has set up sufficient resources" for the expatriates, but has also decided to establish an "additional safeguard fund of 100 million euros as a clear signal in the event that exceptions or non-obvious situations should appear", Grilli said again. The minister also said that the government had "investigated, analyzed and identified all individuals who are or will be in this situation".
REORDERING BENEFITS
For incomes exceeding 15 thousand euros, a deductible of 250 euros is introduced for some deductions (but not for those on health care) and personal income tax deductions. A new maximum deductibility has also been set at 3000 euros.
REGIONS WITH SPECIAL STATUTE
The linear cuts envisaged by the first spending review for the special statute regions increase by one billion. However, 160 million euros are arriving for Campania and about 130 million for the Fund for Municipalities in pre-instability conditions.
BANKS AND INSURANCE
The advance on insurance technical reserves rose from 0,35 to 0,50%. The law provides that in 2014 the levy will fall to 0,45%. The deductions recognized to banks for the higher value recognized in the realignment for the substitute tax are deferred by five years.
PA PAYMENTS WITH DISPOSAL
Public administration arrears will be financed with the divestment plan.
MORE CONTROLS ON THE PA BUDGET
The powers of the Court of Auditors, of the inspection services of the General State Accounting Office and of the Guardia di Finanza for the control of the budgets of local entities are strengthened.
WAR AND INVALIDITY PENSIONS
War and invalidity pensions will also be subject to income tax.
