Bread, pasta, milk – No tax on basic foodstuffs in Italy


The Italian government of Prime Minister Giorgia Meloni is considering abolishing VAT on basic foodstuffs such as bread, pasta and milk for a year. In addition, the VAT on baby and hygiene products must be reduced to five percent. These are some of the measures to be built into next year’s budget law, government sources in Rome have said. Meloni wants to present the draft budget on Monday.

The budget law will contain numerous measures to curb high energy prices and inflation. Prime Minister Giorgia Meloni continues to strive for diversification of energy sources.

For example, this week she held talks with US President Joe Biden on the margins of the G20 summit in Bali and received assurances from him that the US would increase gas supplies to Italy. In this way, Italy wants to reduce its dependence on Russian gas imports.

The head of the strongest Italian trade union federation CGIL, Maurizio Landini, criticized the direction of the Meloni government’s economic policy, including raising the upper limit for cash payments from 2,000 to 5,000 euros from the beginning of next year and plans to launch a ​so-called “flat tax” for self-employed persons with an annual income of up to 85,000 euros. Landini pointed to the need for “real tax reform”. Italians with very high incomes should be asked to pay a “solidarity contribution”.

Source: Krone


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