Today’s Council of Ministers meeting: from the household appliance voucher to the health card for the over-75s – what’s in store
Almost all the pieces ‘have fallen into place’, negotiations with the EU have been concluded and the draft budget is ready to be approved
There are just a few pieces still missing from the jigsaw. Almost all the pieces ‘have fallen into place’; negotiations with the EU are concluded and the text of the budget is ready for approval. Amidst the difficult balancing act between the countless demands that have flooded the government’s desk and the limited resources available, the package includes a set of tax measures to support young people, a 1 billion fund for early retirement – with these measures likely to be postponed to a later date – tax relief on thirteenth-month bonuses (but only for low earners) and the extension of the car tax exemption to family vans. The missing piece, however, is the central one: the cut in personal income tax (IRPEF). Ahead of the Council of Ministers meeting, where the 23.5 billion budget is expected to be approved, the course seems to have been set, even if many measures remain uncertain. Last-minute changes – and even later ones – cannot be ruled out.
Lower taxes for young people
The tax authorities are focusing on the younger generations with measures designed to make Italian wages more competitive. These range from a reduced income tax rate for low-income earners under 30 to a 5 per cent flat tax for new recruits under 35. Among the new measures would also be an extension of the tax-free allowance for those under 25. For businesses hiring young people, there will be substantial tax relief of 140 per cent, a rate that rises to 180 per cent for young mothers.
Older and vulnerable people
A proposal is currently under consideration for a card worth between 300 and 500 euros to cover healthcare costs for those aged 75 and over, subject to an ISEE threshold. The possibility of extending the scheme to large families is also being assessed.
Vehicle tax
The government aims to extend the road tax reduction and make it permanent. Exemption for families with at least four children on cars with 6 to 9 seats and up to 133 kW.
Income tax cut (hanging in the balance)
For the time being, there are no plans to extend the 33 per cent tax rate to amounts above 50,000 euros, although efforts are being made right up to the last minute to find possible ways to fund this. It also appears that the compromise which would have raised the threshold to 55,000 euros has fallen through.
