15/11/23

ITALY: Italy to strengthen anti-tax evasion targets as negotiates with EU

As published on: reuters.com, Wednesday 15 November, 2023.

Italy intends to reduce tax evasion more quickly than it promised as part of commitments in return for post-COVID-19 European Union recovery funds, Economy Minister Giancarlo Giorgetti said on Tuesday.

Rome is renegotiating with Brussels after falling behind in spending the recovery cash it has already received and in meeting policy targets to trigger the release of further payments.

After the Italian government suggested in July it might soften the tax evasion target, Giorgetti's words implied a change of tactic.

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"Structurally reducing tax evasion is a priority to support the modernisation of our country and a decisive factor in freeing up public resources to be allocated to cut the tax burden," Giorgetti said in an address to parliament on the government's 2024 budget.

Italian Prime Minister Giorgia Meloni has repeatedly called for a cooperative approach with taxpayers to curb the chronic tax evasion that has sapped the euro zone's third largest economy, saying more aggressive policies had failed.

Her government has adopted 14 tax amnesties since it took office in October 2022.

To date, the Italian goals agreed by Meloni's predecessor Mario Draghi with European Union authorities envisage cutting what is referred to as the "tax gap" to recoup up to 10 billion euros ($10.72 billion) more in 2024 compared with in 2019.

"We intend to strengthen the already ambitious tax gap reduction targets included in our post-COVID plan," Giorgetti said.

($1 = 0.9331 euros)

Tags

Italy Anti-tax evasion EU Tax avoidance