Bloomberg News

Italian Austerity Plan to Raise VAT Tax, Introduce Wealth Levy

September 06, 2011

Sept. 6 (Bloomberg) -- Italy’s austerity package will increase the value-added tax rate by one percentage point to 21 percent and apply a 3 percent levy on incomes of more than 500,000 euros a year.

The Cabinet will meet today in Rome to authorize a confidence vote in Parliament on the measures, which will also include raising the retirement age of women in the private sector starting from 2014, according to an e-mailed statement from Prime Minister Silvio Berlusconi’s office.

The Cabinet will meet again on Sept. 8 to approve a draft of a separate bill aimed at introducing an amendement in the nation’s constitution requiring a balanced budget and eliminating provincial administrations, according to the statement.

To contact the reporter on this story: Lorenzo Totaro in Rome at ltotaro@bloomberg.net

To contact the editor responsible for this story: Jeffrey Donovan at jdonovan26@bloomberg.net


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