Home » Business » Deputy Minister Maurizio Leo Announces Tax Cuts for Those Earning up to 50,000 Euros: A Fiscal Revolution in Italy

Deputy Minister Maurizio Leo Announces Tax Cuts for Those Earning up to 50,000 Euros: A Fiscal Revolution in Italy

Lower taxes for those earning up to 50 thousand euros. Deputy Minister of Economy Maurizio Leo speaks to the Giornale about tax bills, collection and VAT numbers, announcing the executive’s plan to rebalance the relationship between tax authorities and taxpayers thanks to a “fiscal revolution”.

Deputy Minister, the two-year preventive agreement for VAT numbers has raised applause but also criticism. In any case, it is now law and by 15 October whoever has joined it will have to sign the agreement with the tax authorities. What are the ministry’s forecasts on the number of people who will benefit from it?
«This type of agreement affects a total of over 4 million taxpayers. In the world of VAT numbers there are two categories, the ISA subjects which are 2 million 420 thousand and the flat rate ones, around one million 700 thousand: the financial administration’s proposal is intended for everyone without distinction”.

In the legislative decree concerning this measure, the government has extended, at the request of Parliament, the accession time until 15 October. Is there a particular reason?
“No particular reason, we simply wanted to give the greatest number of taxpayers the opportunity to join.”

How much will you have to pay on average to get a grade of 8 on the tax report?
«In this first phase it would be wrong to focus on this. Our goal is to accompany taxpayers with a low reliability index towards an improvement in their score. It is a process that will take place step by step and which we intend to complete with determination.”

What do you say to those who have criticized the measure by claiming that it will help tax evaders and those who do not want to pay taxes?
«I answer that it is not like that. I was sorry to witness those instrumental controversies on the validity of the measure, because the two-year composition with creditors is a measure that benefits everyone: both taxpayers and the financial administration. It will help us make a notable qualitative leap.”

Can you clarify this point better?
«Today the most updated data say that the checks concern very few VAT numbers every year. And if we broaden our gaze to the last years before Covid, which also blocked the checks, the real checks on taxpayers subject to synthetic reliability indicators with a rating lower than 8 do not reach 1%. Therefore, controls alone are not enough. We must reach out to taxpayers to lead them towards greater fiscal loyalty. Perhaps those who contest this measure want things to stay that way.”

Won’t this mean lowering our guard in the fight against tax evasion?
“Absolutely not. We will be inflexible with those who commit fraud or simulating behavior. I would like to underline this, so as to clear the field of interpretative doubts. Furthermore, in 2023 the financial administration recovered over 31 billion from the fight against tax evasion, of which 24.7 billion from state taxes. Confirming our attention to the topic.”

What is the revenue forecast that the tax administration expects from the composition with creditors?
«I remain of the opinion that it would not be correct to play with numbers. However, our forecasts are optimistic. The composition with creditors is an important challenge: if, as I believe, we manage to bring home a significant result in terms of revenue, ensuring that the taxpayer gradually settles on the actual income, we will have the resources to further lower the tax burden Irpef”.

An ever-present topic is the Irpef cut, but at least 4 billion are needed to extend it. Is it true that the income threshold will be raised to 50 thousand euros?
«In the first intervention on Irpef we started by focusing on the medium-low groups. We will evaluate the available resources, but the next stage could certainly concern the highest incomes, because it certainly cannot be thought that anyone with an income of 50 thousand euros should suffer taxation which, including regional and municipal surcharges, exceeds 50%. %. These are unacceptable levels for a nation like ours which has the objective of greater growth.”

Some of his predecessors justified these levels by explaining that only in this way is it possible to ensure an acceptable quality of services…
“It’s true, taxes are used to pay for services, but it’s even more true that freeing up liquidity in citizens’ pockets means making the economy run better.”

Speaking of incoming resources, there is the green light for the tender for the Lotto. There is talk of a potential revenue of 1.1 billion: will all of it be allocated to tax cuts?
«Here too I prefer not to make hasty predictions. It goes without saying that cutting taxes is one of the government’s primary objectives right now. Therefore, all the resources that will be freed, if possible, will be allocated to this chapter, always keeping in mind that we have budget balances to respect. We were clear on this with the Italians and by voting for us they demonstrated that they appreciated our seriousness.”

The next implementing decree of the tax delegation will be the collection reform. And here is the delicate topic of easier foreclosures of current accounts. Aren’t you going a little too far? Don’t you fear the risk of being accused of putting your hands in Italians’ pockets?
«The text of the decree still needs to be presented and approved by the Council of Ministers. We are working on it in concert with the competent offices, but I can assure you that there are no rules on easy foreclosures. We don’t want to put our hands in the pockets of Italians. I say this without half measures.”

There is talk of artificial intelligence in the hunt for tax evaders. Can you explain how it should work?
«Today we have many elements at our disposal to be able to track down those who evade: interoperable databases, electronic invoicing and electronic payments. Artificial intelligence can be of great support in combining this data and detecting anomalous situations.”

Doesn’t the fact that the reconnaissance takes place preventively risk violating the privacy of citizens?
«It is done preventively so as not to hit the taxpayer with tax assessments. As for the protection of the privacy of the individual taxpayer, I think I can guarantee that all necessary measures will be taken. In this sense and also in relation to the biennial preventive agreement, the Revenue Agency together with Sogei is carrying out a great job”.

Some of his collaborators maintain that the tax reform that the government is implementing is a real revolution. Do you feel like defining it as such?
«I confirm: we are making a real revolution. I can say this without fear of contradiction. Italy has been waiting for this tax reform for over fifty years. We promised it, we planned it and we are implementing it respecting the time objectives that we set ourselves immediately after the approval of the enabling law.”

Where are we in the roadmap?
«Since August 2023, seven implementing decrees have been published in the Official Journal, more than one per month, and two, to date, are in the process of being approved. Completing it will not only be a success for the Meloni government, but for the entire nation, which will finally be able to benefit from a modern tax system in line with the major European and Western economies.”

2024-03-02 19:56:00
#Taxes #thousand #euros #Leo #relationship #tax #authorities #taxpayers

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