Cabinet to Discuss Spending Cuts to Avoid VAT Increase

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Rome, April 30 – The cabinet is set to discuss a new round of public spending cuts on Monday in the hope of raising the money needed to avoid having to increase value added tax by 2% in October.

Cabinet to Discuss Spending Cuts to Avoid VAT Increase
Italian Cabinet

The government is trying to avoid the planned tax hike, which is part of the ‘Save Italy’ austerity package it approved in December, amid fears that it will plunge the country further into recession.

Premier Mario Monti’s emergency government has also vowed to revamp Italy’s provincial governments after the European Central Bank called on it to push ahead with cost-cutting mergers within this layer of local government.

Proposals to abolish the provincial governments altogether were dropped last year.

“The provincial governments feature in our Constitution, although there is scope to restructure them to obtain big spending reductions,” Economy Ministry Undersecretary Gianfranco Polillo said on Monday.

Source: Ansa

3 COMMENTS

  1. Guess they need some thorough discussion in order to make this recession time bearable for the citizens and residents!

  2. Now someone is talking! With the crisis shaking everywhere, i guess it’s the most reasonable thing to do!!!

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