Source Taxlive (in Dutch)
Unofficial translation:
Italian Prime Minister Conte is considering cutting VAT in Italy to boost consumption in sectors hit hard by the corona crisis. Several Italian newspapers write this on Monday.
Finance Secretary Laura Castelli told La Repubblica that from next year, the government could cut VAT in sectors such as restaurants and hotels, cars, clothing and tourism. Conte expects to put a concrete plan on the table in September.
The FD writes that Ignazio Visco, the president of the Italian central bank, is skeptical about the plan. He advocates a complete overhaul of the tax regime in Italy, rather than Rome ‘tax-before-tax’ making adjustments.
In Germany, the high VAT rate will drop from 19% to 16% from July 1 to the end of this year. But Castelli wants the reduction to last for two years in Italy, and only applies if people pay electronically, the newspaper writes .
